^o,jQL^t^ 


1^=^ 


J3 


t)r.  Wtlltem  DavJE 

at.  Paul.  Minn. 


iir 


AN 


HISTORICAL   ACCOUNT 


OF 


MASSACHUSETTS    CURRENCY 


BY    JOSEPH    B.    FELT 


Crescentem  sequitur  cura  pecuniam 
Majoruraque  fames  . 

HOBACE. 

Medio  tutissimus  ibis  — ■—^. 

Otid. 


BOSTON: 

PRINTED    BY   PERKINS   &   MARVIN. 

1  839. 


EMENDATA. 

page.  Line. 

61.  Omit"ffcj«," 30 

70.  Supply  "  are,"  next  to  '^  profits," 23' 

95.  Read  ".Assembly,"  for  "they,'" 31 

109.  Read  "  JoAit,"  for  "  Jonathan," 25 

153.  Read  "given,"  for  "give," 32 

156.  Read  "  It  is,"  for  "  This," 13 

156.  Supply  "June,"  before  "5,"  in  the  margin,    ....  21 

184.  Read  "  less,"  for  "  wider  and  greater,"           ....  28 

187.  Read  "  least,"  for  "  last," 27 

224.  Read  "price,"  for  "prices," 14 


HISTORICAL   ACCOUNT 

MASSACHUSETTS    CURRENCY. 


INTRODUCTION. 


The  subjects  of  history  are  various  as  the  deeds  and 
relations  of  man.  Their  interest  proceeds  from  causes, 
artificial  as  well  as  real.  Some  of  them  hold  a  pre-emi- 
nence in  adaptedness  to  call  up  the  deep  thoughts  of 
genius  and  give  wing  to  the  lofty  aspirations  of  poetry  and 
eloquence.  Others  of  them  sustain  an  humbler  rank. 
Though  needful  to  be  adduced,  that  there  be  no  lack  of 
symmetry  in  the  representation  of  a  Commonwealth,  yet 
they  allow  no  extensive  scope  to  the  eiforts  of  intellect 
and  to  the  ornaments  of  imagination.  To  the  latter  class, 
belongs  the  topic  of  the  succeeding  pages.  However 
relating  to  objects  which  exert  almost  a  magical  influence 
over  the  desires,  toils  and  attaclmients  of  society,  still,  in 
itself  considered,  it  is  far  from  possessing  the  fabled  power 
of  Midas,  who  made  gold  of  every  thing  he  touched. 

The  term  currency^  has  been  variously  defined.  Hume 
thus  explains  it, — '•  The  instrument  which  men  have 
agreed  upon  to  facilitate  the  exchange  of  one  commodity 
for  another."  This  appears  to  be  defective.  It  is  more 
applicable  to  modern  practice  than  to  former.  Commodi- 
ties were  themselves  anciently  sold  one  for  another,  and 
so  served  all  the  purpose  of  the  more  precious  metals. 
Coin  is  to  money  as  species  to  a  genus.  The  latter  is  any 
substance  to  which  public  authority  has  assigned  a  fixed 

2 


3G5S80 


10 


HISTORICAL  ACCOUNT  OF 

value,  while  the  former  may  be  only  a  part  of  this  assign- 
ment. 

Cm-rency,  in  application  to  the  different  periods  of  our 
State,  denotes  whatever  has  been  adopted,  as  a  medium  of 
exchange,  by  general  consent  and  practice.  Such  a  con- 
struction may  seem  rather  too  broad,  when  we  come  to 
ascertain  what  it  includes.  It  may  appear  to  our  associa- 
tions of  mind,  familiar  with  a  system  of  trade,  considerably 
unlike  that  of  our  ancestors,  as  outre  or  incongruous. 
Still,  it  is  not  without  the  justification  of  facts.  The 
Rev.  John  Cotton,  while  pleading  the  cause  of  one  of  his 
flock,  who  was  charged  with  acting  more  like  the  wolf 
than  the  lamb,  remarked — "  That  is  called  current  money 
which  every  man  will  take."  It  is  well  known,  that 
substances,  adapted  as  a  medium  of  circulation  or  standard 
value,  have  been  essentially  different  in  various  ages  and 
nations.  In  Italy,  the  ancient  mode  of  estimating  articles 
of  property,  was  by  cattle.  Hence,  the  word,  '  pecunia,' 
in  their  language,  was  from  pecus,  flock  or  herd ;  though 
it  has  long  been  translated,  money.  Hence,  also,  as  Pliny 
assm-es  us,  the  first  coin  of  the  Latins  was  stamped  with 
a  cow.  The  Greeks  had  similar  ideas  of  money.  We 
read  in  Homer,  that  the  brazen  armour  of  Diomedes  was 
estimated  at  nine  oxen,  and  the  golden  armour  of  Glaucus, 
at  one  hundred.  Numa  Pompilius  had  currency  manufac- 
tured of  wood  and  leather.  The  last  of  these  was  used 
for  a  similar  pm-pose  by  Frederic  II.,  at  the  siege  of  Milan  ; 
by  John  of  France,  while'  paying  for  his  ransom  to  Ed- 
ward III.,  and  by  James  among  his  subjects  in  Ireland. 
It  should  be  remarked,  that  such  medium  of  John  had 
each  of  its  pieces  set  off  with  a  small  silver  nail.  The 
Lacedemonians  trafficked  by  means  of  iron  bars,  quenched 
in  vinegar.  So  did  the  primitive  Britons  employ  similar 
formations  of  this  metal,  with  the  addition  of  tin  plates 
for  the  same  object.  Fruit  and  cocoa,  among  the  Mexi- 
cans, are  paid  for  other  things  of  value  ;  and  maize,  before 
their  country  was  discovered  by  Europeans,  served  the 
like  end.  Almonds  and  shells  in  India,  purchase  the 
necessaries  of  life.     The  last  of  these  two  currencies  ai'e 


MASSACHUSETTS  CURRENCY.  1 1 

common  in  some  nations  of  Africa ;  while  salt-bricks  and 
beads,  are  of  similar  use  in  another  of  its  kingdoms,  which 
is  Abyssinia.  Besides  these  items.  Smith,  in  his  Wealth 
of  Nations,  says,  that  iron  nails  in  a  village  of  Scotland, 
di'ied  cod  in  Newfoundland,  sugar  in  several  of  the  West 
India  islands,  and  hides  in  other  countries  were  substituted 
for  coin.  If  looking  nearer  home,  we  have  the  fact,  that 
in  the  first  days  of  the  '  Old  Dominion,'  tobacco  would  pur- 
chase the  most  valuable  commodity.  From  100  to  150  lbs. 
of  it,  bought  many  a  good  wife.  At  a  later  period,  before 
our  Western  States  were  favored  with  steam  navigation, 
horses,  cattle,  and  hogs,  were  regularly  exchanged  for 
goods. 

These  examples  show,  that  money  or  currency,  is  a 
convertible  term,  not  absolutely  confined  to  any  one  mate- 
rial ;  that,  among  distinct  nations  and  in  several  periods,  it 
may  refer  to  substances  as  diverse,  as  those  of  the  animal, 
vegetable  and  mineral  kingdoms.  Hence,  we  may  not 
exclude  from  the  list  of  currencies  some  of  the  articles 
adopted  as  such,  by  om'  fathers  before  the  close  of  the 
17th  centmy,  merely  because  they  do  not  tally  with  those 
to  which  we  have  been  accustomed.  This  introduction 
now  brings  us  to  enter  on  the  course  immediately  in  view. 
As  we  advance,  it  is  proposed  to  remark  on  currency,  not 
merely  in  its  several  species,  but  also  in  some  of  its  rela- 
tions. 


Long  before  any  permanent  settlements  were  made  on 
the  shores  of  Maine,  there  was  an  extensive  commerce 
carried  on  with  the  Indians  of  that  territory  by  the  fleets, 
which  amiually  came  from  Europe  for  fish  and  peltry. 
In  such  intercom'se,  cash  was  scarcely  known.  The 
natives  were  ready  to  barter  large  amounts  of  skins  for 
beads,  knives,  hatchets  and  blankets,  and  especially  for 
tobacco,  powder,  shot,  guns  and  strong  water.  Philanthro- 
pists, who  desired  the  highest  welfare  of  the  red  man,  and 


12 


HISTORICAL  ACCOUNT  OF 

sought  to  bring  him  under  the  salutary  restraints  of  the 
gospel,  according  to  the  professed  purpose  of  every  charter 
for  American  colonies,  perceived  that  the  most  of  such 
merchandize  tended  to  demoralize  and  render  him  a  dan- 
gerous neighbor.  They  petitioned  and  obtained  restric- 
tions. Their  benevolent  action,  as  usual  in  attempts  to 
suppress  gainful  but  deleterious  customs,  caused  much 
excitement  among  the  numerous  traders,  who  set  more  by 
their  own  interest  than  they  cared  for  others'  ruin. 

The  article  of  peltry,  so  abundantly  offered  by  the 
natives  and  so  eagerly  sought  by  foreigners,  was  received 
and  passed  as  cash  by  the  colonists. 

Another  commodity,  adopted  by  them  from  the  aborigi- 
nes, for  a  similar  end,  was  wampum.  This  was  brought 
from  Manhadoes,  afterwards  New  York,  on  a  voyage 
thither  in  1628.  It  is  thus  described  by  Governor  Brad- 
ford : — "  That  v^^hich  in  time  turns  most  to  our  advantage 
is,  their  now  acquainting  and  entering  us  into  the  trade  of 
wampom.  By  which  and  provisions,  we  quite  cut  off 
the  trade  both  from  the  fishermen  and  straggling  planters. 
And  strange  it  is,  to  see  the  great  alteration  it  in  a  few 
years  makes  among  the  savages.  For  the  Massachusetts 
and  others,  in  these  parts,  had  scarce  any,  it  being  only 
made  and  kept  among  the  Pequots  and  Naragansetts,  who 
grew  rich  and  potent  by  it ;  whereas  the  rest,  who  use  it 
not,  are  poor  and  beggerly."  Here  we  have  the  position, 
long  assumed  by  the  great  body  of  the  civilized,  that  a 
circulating  medium,  aside  from  the  fruits  of  the  field  and 
of  the  chase,  tends  to  enrich  and  strengthen  a  people, 
confirmed  by  the  experience  of  men  in  a  state  of  nature. 

Roger  Williams,  in  his  observations  on  such  money  of 
the  New  England  Indians,  gives  the  succeeding  account : — 
"  Their  own  is  of  two  sorts,  one  white,  which  they  make 
of  the  stem  or  stock  of  the  periwinkle,  when  all  the  shell 
is  broken  off;  and  of  this  sort,  six  of  their  small  beads, 
which  they  make  with  holes  to  string  their  bracelets,  are 
current  with  the  English  for  a  penny.  The  second  is 
black,  inclining  to  blue,  which  is  made  of  the  shell  of  a 
fish,  which  some  English  call  hens — poquahock ;  and  of 


MASSACHUSETTS  CURRENCY.  jg 

this  sort,  three  make  aii  EngUsh  penny.     One  fathom  of 
this  their  stringed  money  is  worth  five  shilUngs." 

To  witness  the  good  credit  of  what  they  deemed  their 
choice  riches  among  the  emigrants — superior  to  themselves 
only  by  means  of  education — must  have  gratified  the 
natural  proprietors  of  the  soil,  and  afforded  them,  amid 
their  degradation,  a  feeling  of  some  independence. 

In  passing  from  this  khid  of  cm-rency,  we  come  to 
another.  Our  fathers  having  at  fii-st  neither  mints  nor 
banks,  except  those  of  the  earth  and  ocean,  di-ew  from  the 
former  liberal  discounts. 

Of  these,  was  corn.  This  was  used  as  a  generic  term, 
to  include  several  species  of  grain  and  even  peas.  Such 
and  similar  productions,  together  with  live  stock,  lawfully 
received  at  the  Colonial  treasury  for  public  taxes,  was  often 
designated  by  the  plirase,  "comitry  pay." 

Some  sj^ecimens  show  how  a  mediimi  of  this  kind  was 
applied. 

It  was  a  custom  in  the  old  Colony,^  when  a  sm'veyor  1628. 
ran  the  lines  of  a  lot  of  land,  to  compensate   him  with  a     3  * 
peck  of  corn. 

'•It  was  propomided,  ^  that  JVIr.  Phillips^  should  have  1630. 
allowed  him  tlu'ee  hogsheads  of  meale,  one  hogshead  of    13®' 
make,  four  bushels  of  Indian  corne,  one  bushell  of  oate 
meale,  halfe  an  hundred  of  salte  fishe ; — for  apparrell  and 
other  provisions  xx'^*  or  els   to  have  xi""'  given  him  in 
money  per  ami  to  make  his  owne  prouisions,  if  hee  chuse 
it  the  rather."     "It  is  ordered  that  Mr  Patricke  and  Mr  Sept. 
Vnderhill    shall    have  allowed  them  for  halfe  a    yeare's 
prouision  two  hogsheads  of  meale,  foiu:  bushells  of  malte, 
ten  pounds  of  powder  and  leade  to  make  shote,  also  howse 
roome  prouided  for  them  and  15''^'  12*  in  money  to  make 
other   prouision   from  the   tyme    they   begiiie    to   keepe 
howse." 

"It  is  ordered  that  those  of  Dorchester,  who  braught     nc, 
certaine  cattell  of  the  merchants  of  Dorchester,  shall  pay 
Nicholas  Stower  nine  bushels  of  meale  or  of  Indian  corne, 

'  Plymouth  Colony  Records.  ^  Rev.  George  Phillips  of  Water- 

'  Massachusetts  Colony  Records.        town. 


14 


HISTORICAL  ACCOUNT  OF 


jg3Q  or  nine  lbs  of  beauer  for  the  keeping  of  the  said  cattell 

"^^^^^  according  to  an  agreement." — "  Sir  Richard  Saltonstall 

is  fined  four  busliells  of  make  for  his  absence  from  Court." 

These  passages  give  us  an  idea  of  the  manner,  in  which 

our  ancestors  long  passed  several  articles  of  trade — as  we 

do  cash. 

Such  a  paying  of  grain,  as  just  mentioned,  was  no 
unheard  of  practice  in  the  kingdom,  whence  the  Puritans 
emigrated.  ^  "  By  the  18th  of  Elizabeth,  it  was  enacted, 
that  one-third  of  the  rent  of  all  College  leases,  should  be 
reserved  in  corn,  to  be  paid  either  in  kind  or  according  to 
the  current  prices  at  the  nearest  public  market.  The 
money  arising  from  this  corn  rent,  though  originally  but 
a  third  of  the  whole,  is,  in  the  present  times,  according  to 
Dr.  Blackstone,  commonly  near  double  of  what  arises  from 
the  other  two-thirds." 

As  examples  of  the  value  of  currency,  the  ensuing  items 
are  presented.  ^ "  It  is  ordered  that  labourers  shall  not 
take  aboue  12*^  a  day  for  their  work  and  not  aboue  6'^  and 
meate  and  drink  under  paine  of  10' ;  noe  master  carpenter, 
mason,  joyner  or  bricklayer  shall  take  aboue  IG"*  a  day  for 
their  worke,  if  they  have  meate  and  drink — and  the 
second  sort  not  aboue  12^  a  day  under  payne  of  10'  both 
to  giuer  and  receauer." 
Oct.  "It  is  ordered  that  sawers  shall  not  take  aboue  12''  a 
19'  scoore  for  saweing  oake  boards  and  10'^  a  scoore  for  pyne 
boards,  if  they  haue  their  wood  felled  and  squarred  for 
them." 

These  enactments  exhibit  a  great  difference  between 
the  prices  of  labor  then  and  in  our  day — and  thus  denote 
how  much  more  the  same  amount  would  procure  at  that 
period  than  it  now  does. 
Nov.  ^^^^  ^^^^^  authorities,  perceiving  the  legal  restrictions  on 
9.  the  rate  of  beaver  had  better  be  repealed,  comply  with 
such  expediency.  "  Whereas  the  vsuall  rate  of  beauer 
hath  beene  after  6'  the  pound,  it  shall  be  hereafter  lefte 
free  for  euery  man  to  make  the  best  proffitt  and  improue- 

'  Smith's  Wealth  of  Nations,  vol.  1.         '  Massachusetts  Colony  Records. 


MASSACHUSETTS  CURRENCY.  ^  5 

ment  of  it  that  hec  can."  ^  The  price  of  this  article  being  1030. 
thus  left  free,  soon  rose,  as  Governor  Dudley  informs  us,  ^^-^^ 
to  10'  and  20'  a  lb. 

As  proof  that  our  ancestors  were  interested  in  the  pres-  1631. 
ervation  of  gold  and  silver  money  from  unlawful  diminu-  March 
tion,  as  well  as  of  due  regard  to  the  administration  of 
justice  in  their  native  land — they  apprehended  one  Robert 
Wright,   who   had   escaped   hither   from   London,  being 
accused  of  "clipping  the  king's  coyne." 

This  sort  of  money,  so  introduced  to  our  notice, 
suggests  the  ensuing  remarks. — ^  The  method  of  keeping 
accounts  by  our  Colonists,  relative  to  specie  '^  as  well  as 
other  currency,  was  by  pomids,  shillings,  pence  and  far- 
things. It  was  first  introduced  in  England  by  William 
the  Conqueror.  He  ordered  the  pound  of  account  to  equal 
a  pound  of  silver,  and  this  to  be  divided  either  into 
twelve  shillings  of  twenty  pemiies,  or  twenty  shillings  of 
twelve  pennies,  in  accordance  with  the  table  of  Troy 
weight.  It  was  not  till  several  reigns  after  his,  that  such 
a  pound  was  denominated  a  pound  sterling.  So  reduced 
had  this  standard  become  under  Charles  the  First,  who 
granted  the  Chai'ter  of  Massachusetts,  that  a  pound  of 
silver  was  estimated,  while  he  was  on  the  throne,  both 
here  and  in  the  mother  country,  at  more  than  three  times 
what  it  was  in  the  days  of  William.  Owing  to  the  un- 
steady and  injudicious  system  of  the  predecessors  of  Charles, 
for  the  regulation  of  the  cm*rency,  as  well  as  to  large 
debts  contracted  under  his  father's  administration,  coin  was 
very  scarce  when  our  ancestors  emigrated  to  this  country. 

Hence,  we  have  one  reason,  why  they  adopted  such  a 
medium  of  exchange,  as  has  been  already  described. 

This  they  applied  to  their  judicial  as  well  as  commercial 
proceedings.     ^  "  Chickataubott  is  fyned  a  skyn  of  beauer  June 
for  shooteinge  a  swine  of  Sir  Richard  Saltonstall." 

Perceiving  some  difficulty  with  regard  to  the  reception 

>  Gov.  Thomas  Dudley's  leUer  to  applied   to   articles  of  provision,  in 

the  Countess  of  Lincoln.  Massachusetts,   till  1775.     It  began 

^James  Taylor's  view  of  the  money  to  be  used  here  in  reference  to  hard 

system  of  England.  money  as  soon  as  1758. 

^  The  term  specie,  or  species,  was  *  Massachusetts  Colony  Records. 


]g  HISTORICAL   ACCOUNT   OF 

1631.  of  grain  instead  of  specie,  the  succeeding  enactment  is 
made. — "  It  is  ordered  that  corne  shall  passe  for  payment 
of  all  debts  at  the  vsuall  rate  it  is  solde  for,  except  money 
or  beauer  be  expressly  named."  This  rule  was  far  from 
being  a  dead  letter.  For  over  a  half  century,  it  continued 
in  full  force  and  operation. 

Ascertaining  that  there  was  an  inclination  in  traders  to 
clear  the  Colony  of  all  coin,  bought  on  speculation  for  the 
London  market,  and  also  of  peltry,  on  which  they  could  lay 
their  hands,  the  magistrates  see  fit  to  interpose  and  throw 

1632.  Eiround  them  a  legal  check.  "  It  is  ordered  that  noe  planter 
March  within  the  limits  of  this  jurisdicon,  returneing  for  Eng- 
land, shall  carry  either  money  or  beauer  with  him,  without 
leaue  from  the  Governor,  vnder  paine  of  forfeitinge  the 
money  and  beauer  so  intended  to  be  transported."  As  an 
example  for  such  a  step,  with  regard  to  metallic  currency, 
they  had  an  edict  of  Gtueen  Elizabeth  for  a  like  purpose. 

While  thus  vigilant,  the  civil  authorities  are  careful  to 
enlarge  the  circulating  medium,  by  promoting  the  traffic 
June  in  peltry.     ^ "  It  is  agreed  that  there  ^shalbe  a  trucking 
^-     howse  appoynted  in  eury  plantacon  whither  the  Indians 
may  resorte  to  trade,  to  avoide  there  comeing  to  seuerall 
howses."     The  fur  trade  is   also  farmed   or   let  out   in 
Oct.   several  parts.     Among  those  who  contract  for  it,  was  John 
Pynchon,  the  promoter  and  leader  of  Springfield  settlement. 
For  the  privilege  in  his  vicinity,  he  gives  £25  a  year. 
As  expediency  calls  for  a  change  in  the  regulation  of 
1G33.  grain,  an  alteration  is  made.     "The  price  of  corne,  for- 
j*'    merly  restrained  to  6'  the  bushell,  is  nowe  sett  att  liberty, 
to  be  sold  as  men  can  agree."     This,  not  being  so  satis- 
factory as  anticipated,  is  reversed,  more  than  six  months 
after,  to  what  it  was  before. 

One  of  the  instances  wherein  government  agree  for  live 
stock,  as  an  item  of  the  common  currency,  now  occurs. 
"Noddle's  Ileland  is  granted  to  Mr.  Samuel  Maueracke, 
to  enioy  to  him  and  his  heires  for  euer,  yeilding  and  paye- 
ing  yearely  att  the  Generall  Court  to  the  Gouenor  for  the 

'  Mass.  Col.  Records.  together,  in  ancient  chirography,  as 

*  Shall,  as  an  auxiliary,  and  be,  as      in  the  above  sentence, 
a  principal  verb,  are  often  written 


MASSACHUSETTS  CURRENCY.  .         J 7 

time  being,  either  a  fatt  weather,  a  fatt  hogg,  or  xl'  in  1(^33. 
money,  and  shall  giue  leave  to  Boston  and  Charles  Towne  -^'^-' 
to  fetch  wood  contynnally  as  their  neede  requires,  from 
the  Southerne  parte  of  the  said  Ileland."  Though  the 
estimated  value  of  these  animals  was  low,  compared  with 
what  it  has  been  since,  yet  it  far  exceeded  the  price  of 
their  kind  in  the  reign  of  William  the  Conqueror.^  Then 
a  pasture  fed  ox  was  computed  at  1* ;  a  ram  or  sheep  at 
4'',  and  other  articles  in  proportion.  However  the  animal 
items  of  Maverick's  agreement  do  not  come  to  our  ears 
with  such  a  dignified  sound — because  use  has  made  it  so, 
— as  the  other  of  a  pecuniary  sort ;  still  they  were  part 
and  parcel  of  a  bona  fide  contract. 

While  the  circulating  medium  partook  of  so  great  a 
variety,  we  have  another  specimen  how  well  it  expended. 
2 "It  is  ordered,  that  maister  carpenters,  sawers,  masons,  Oct, 
clapboard  ryuers,  bricklayers,  tylars,  joyners,  mowers,  &c. 
shall  not  take  aboue  2'  a  day,  findeing  themselues  dyett, 
and  not  aboue  14*^  a  day,  if  they  haue  diett  found  them, 
vnder  the  penalty  of  5'  both  to  giuer  and  receaver,  for 
euery  day  that  there  is  more  giuen  and  receaved.  Also, 
that  all  others,  inferior  workmen  of  the  said  occupacons, 
shall  haue  such  wages  as  the  Constables  of  the  said  place 
and  two  other  inhabitants,  that  hee  shall  chuse,  shall 
appoynt.  Also,  it  is  agreed,  that  the  best  sorte  of  labourers 
shall  not  take  aboue  IS"^  a  day,  if  they  dyett  themselues, 
and  not  aboue  8^  a  day,  if  they  haue  dyett  found  them, 
vnder  the  aforesaid  penalty  both  to  giuer  and  receaver. 
Likewise,  that  the  wages  of  the  inferior  labourers  shall  be 
refered  to  the  Constable  and  two  others  as  aforesaid." 
"  Mr  taylom-s  shall  not  take  aboue  12'^  a  day,  and  the 
inferior  sorte  not  aboue  S'\  if  they  be  dyeted,  vnder  the 
aforesaid  penalty,  and  for  all  other  Avorke  they  doe  att 
home  proporconably,  and  soe  for  other  worke  that  shalbe 
done  by  the  greate  by  any  other  artificer.  Further,  it 
is  ordered  that  all  workmen  shall  worke  the  whole  day, 
allowing  convenient  time  for  foode  and  rest.  This  order 
to  take  place  the  12'''  of  this  present  moneth." 

>  Taylor  on  the  Money  System  of  England.         *  Mass.  Ctalony  Records. 

3 


13  HISTORICAL  ACCOUNT  OF 

1633.      So  quick  was  the  demand  for  corn,  as  a  substitute  for 
specie,  as  well  as  for  food,   ^  no  person  is  allowed  to  feed 
his  swine  with  it,  except  such  as  is  surveyed  by  two  of 
his  neighbors,  and  by  them  judged  "  unfit  for  man's  meat." 
Knowing  that  the  prices  for  mechanical  employments 
were  likely  to  be  disarranged  by  an  inordinate  charge  for 
imported  and  other  goods,   and  thereby  the  currency,  as 
well  as  resources  of  the  country  to  be  depreciated  in  real 
value,   the  Court  of  Assistants  pass  the   subsequent  law. 
8.      "  Whereas  by  order  of  Court  holden  in  October  last,  the 
wages  of  workemen  were  reduced  to  a  certainety  in  regard 
of  the   greate  extorcon  vsed  by  dyvers  persons  of  little 
conscience,  and  the  greate  disorder  which  grewe  hereupon 
by  vaine  and   idle   waste  of  much  precious  tyme,   and 
expence  of  those  imoderate  gaynes  in  wyne,  strong  water 
and  other  superfluities :  nowe,  least  the  honest  and   con- 
scionable  workemen  should  be  wronged  or  discouraged  by 
excessive  prizes  of  those  commodyties  which  are  necessary 
for  their  life  and  comfort, — wee  have  thought  it  very  iust 
and  equall,  to  sett  order  also  therein  ;  wee  doe  therefore 
hereby  order,  that  after  publique  notice  hereof  noe  persons 
shall  sell  to  any  of  the  inhabitants  within  this  jurisdiccon 
any   provision,    cloathinge,    tooles   or   other   commodities 
above  the  rate  of  ^foure  pence  in  a  shilling  more  than  the 
same  cost  or  might  be  bought  for  ready  money  in  England, 
on  paine  of  forfeiting  the  vale  we  of  the  thinge  soldo, 
except  cheese,  which,  in  regard  of  the  much  hazard  in 
bringing,  and  wyne  and  oyle,  vinegar  and  strong  waters, 
which  in  regard  of  leakeing  may  be  soldo  att  such  rates 
(provided  the  same  be  moderate)  as  the  buyer  and  seller 
can  agree.     And  for  lynnen  and  other  commodyties,  which, 
in  regard  of  their  close  stowage  and  small  hazard,  may  be 
afi:orded  att  a  cheape  rate,  wee  doe  advise  all  men  to  be  a 
rule  to  themselues  in  keepeing  a  good  conscience,  assureing 
them,  that  if  any  man  shall  exceede  the  bounds  of  mod- 
eracon,  we  shall  punish  them  seuerely."     This  enactment 
of  authorities,  who  meant  to  be  minded,  shows  the  small 
progress  made  by  our  infant  Commonwealth  towards  the 

*  Mass.  Colony  Records.  *  This  was  repealed  Sept.  2,  1635. 


MASSACHUSETTS  CURRENCY.  jQ 

independence  of    other   countries,    which   she    has    longig33_ 

enjoyed,  and  would  more  enjoy,  if  not  indulging  fanciful 

wants  and  hurtful  extravagances.  It  would  be  legislation, 
passing  strange  to  our  eais  in  this  period,  to  allow  extra 
encouragement  on  the  products  of  the  dairy  and  of  the 
orchard,  because  of  the  pains  and  perils  of  importing  them. 
This  is  an  exemplification  of  the  oft  suggested  thought, 
that  what  the  necessities  of  one  age  render  important,  the 
fullness  of  another  renders  trivial. 

^For  a  further  illustration,  as  to  the  worth  of  money  in  1634. 
judicial  service,   we  have  the  ensuing  order. — "  It  was    *^''^"* 
concluded,  that  the  Jiuy  should  have  6*^  a  man,  and   the 
foreman  12*^,  in  such  cases  of  controversy  as  they  shall  go 
upon."     Pence  would  hardly  spend  so  well   in  law  now 
a  days. 

With  regard  to  the  sumptuary  regulation  previously 
related,  it  appears  that  every  individual  did  not  heed  its 
counsel,  or  sufficiently  dread  its  uplifted  rod.  2"  It  was  Aug. 
witnessed  vpon  oath  that  James  Rawlens  tooke  8"^  a  day,  ^• 
and  meate  and  drinke,  for  ten  dayes  worke  for  one  of  his 
servants  for  weeding  corne,  contrary  to  an  order  of  Court, 
and  therefore  is  to  pay  5'  for  eury  day  hee  hath  soe  trans- 
gressed." The  law  so  broken,  being  found  of  very  diffi- 
cult application,  is  repealed  the  next  month. 

While  means  are  thus  taken  to  keep  the  price  of  goods 
and  labor  within  limits,  suited  to  preserve  the  medium  of 
exchange  from  depreciating,  business  is  transacted  conve- 
niently with  the  Indian  money.  2"  Our  neighbours  of  12. 
Plymouth  trade  this  year  at  Kenebeck,  so  as  Mr.  Winslow 
carried  with  him  into  England,  about  twenty  hogsheads 
of  Beaver,  the  greatest  part  whereof  was  traded  for  wain- 
pampeage." 

As  a  sample  of  what  coin  or  its  equivalent  would  com- 
mand in  travelling,  we  offer  the  subsequent  injunction. 
'*''  Noe  person  that  keepes  an  ordinary  shall  take  above  6*^  Sept 
a  meale  for  a  person,  and  not  above  l"^  for  an  ale  quarte  for 
beare  out  of  meale  time  vnder  the  penalty  of  10'  for  eury 

'  Plymoutli  Colony  Records.  ^  Winthrop,  1  v. 

=*  Mass.  Colony  Records.  '  Mass.  Col.  Records. 


20  HISTORICAL  ACCOUNT  OF 

1634,  offence,  either  of  dyet  or  beare."     While  a  landlord  was 

"  '^^  thus  tied  up  to  economic  rules,  he  was  strictly  required  to 
suffer  no  whiffs  nor  fumes  of  tobacco  within  his  premises. 
So  restricted,  he  had  little  opportunity  to  play  either 
Shylock  or  Falstaff. 

Feeling  constrained  to  increase  their  means  of  defence, 
the  General  Court  pass  a  law,  which  wears  the  appearance 

1C35.  of  more  favor  for  Mars  than  for  Minerva.  ^  '*  It  is  ordered 
^/^  that  hereafter  farthings  shall  not  passe  for  currant  pay.  It 
is  likewise  ordered,  that  muskett  bulletts  of  a  full  boare 
shall  passe  currantly  for  a  farthing  a  peece,  provided  that 
noe  man  be  compelled  to  take  above  12"^  att  a  tyme  of 
them." 

As  a  matter  of  general  convenience  and  utility,  the 
succeeding  enactment  is  passed.  "  It  shalbe  lawful!  for 
any  man  to  pay  his  rate  to  the  Treasurer  in  merchantable 
corne  of  the  country  at  v'  the  bushell.  This  order  to 
continue  till  nexte  harvest."  Though  the  last  clause  is 
here  appended,  yet  the  custom,  so  legalized,  of  satisfying 
the  Colonial  demands  with  grain,  is  continued  for  a  con- 
siderable period  of  years. 

To  keep  items  of  currency  within  reasonable  bounds, 
according  to  the  fair  value  of  them,  both  at  home  and 
abroad,  the  ensuing  regulations  are  adopted.  '^  Noe  Indean 
corne,  (except  seede  corn*)  shalbe  solde  for  above  6'  per 
bushell,  vnder  the  penalty  of  forfeiture  of  such  corne,  or 
the  valewe  of  it.  Merchantable  beaver  shall  passe  att  x' 
the  pound." 

Vigilant  to  preserve  a  salutary  balance  between  the 
prices  of  labor  and  merchandize,  and  the  medium  of  ex- 
change, so  that  neither  may  injuriously  preponderate,  the 

Sept.  government  adopt  the  succeeding  regulation.  ''  Whereas 
^'  two  former  lawes,  the  one  concerning  the  wages  of  worke- 
men,  the  other  concerning  the  prizes  of  commodyties,  were 
for  dyvers  good  consideracons  repealed  this  present  Court, 
nowe  for  avoydeing  such  mischiefes  as  may  follow  there- 
v]X)n  by  such  ill  disposed  persons  as  may  take  liberty  to 
oppresse  and  wronge  their  neighbours  by  takeing  excessive 

'  Mass.  Col.  Records. 


MASSACHUSETTS  CURRENCY.  21 

wages  for  worke,  or  unreasonable  prizes  for  such  necessary  1635. 
merchandizes  or  other  commodyties,  as  shall  passe  from  ^^"^ 
man  to  man  ; — It  is  therefore  no  we  ordered  y'  if  any  man 
shall  offend  in  any  of  the  said  cases  against  the  true  intent 
of  this  lawe,  hee  shalbe  punished  by  fine  or  imprisonment 
according  to  the  quallity  of  the  offence,  as  the  Court  vpon 
lawfull  tryall  and  conviccon  shall  iudge."     Notwithstand- 
ing the  rod  of  legislation  was  thus  lifted,  as  a  terror  to 
evil  doers,  it  did  not  have  its  intended  and  full  effect. 
"Josuah  Huyes  hath  forfect  V  for  knyves,  and  iiii'  vi*^    Oct. 
for  scythe,  which  hee  solde  for  above  1111*1  in  the  shihing 
proffitt." 

That  ai-ticles,  then  regarded  as  luxuries,  and  an  indul- 
gence in  them  di-eaded  as  the  precursor  of  disarrangement 
and  detriment  to  the  medium  of  exchange,  might  be  dis- 
couraged in  their  importation  to  this  Colony,  the  ensuing 
regulation  is  adopted.  "For  preventing  the  imoderate  1636. 
expence  of  provisions  brought  from  beyond  the  seas,  it  is  j^' 
ordered,  that  whosoever,  after  three  months  from  the  date 
hearof,  shall  buy  or  receive  out  of  any  ship,  any  fruite, 
spice,  shugar,  wine,  strong  water,  or  tobacco,  shall  pay  to 
the  Treasurer  one  sixth  part  of  the  price  or  valew  thereof, 
and  every  person  who  shall  buy  or  receive  any  of  the  said 
commodyties  with  intent  to  retaile  the  same  to  others,  shall 
pay  to  the  Treasurer  one  third  part  of  the  valew  or  price 
thereof :  provided  that  this  order  shall  not  extend  to  such 
wine  as  the  deacons  of  the  Chm-ches  shall  buy  or  procure 
bona  fide  for  the  Chm'ches'  publike  vse." 

As  a  more  particular  indication  of  the  manner  in  which 
grain  and  peltry  were  current  for  public  uses,  we  have  the 
succeeding  item,  relative  to  a  tax  assessed  on  the  several 
towns.  ^"  It  is  agreed  that  good  merchantable  corne  shall 
passe  for  payment  in  this  rate  at  5'  the  bushell,  to  bee 
so  delivered  at  Boston  at  the  appointment  of  the  Treasurer 
to  bee  called  for  when  the  Treasurer  please.  And  it  is 
ordered  that  the  Deputie's  debt  shalbe  paid  to  him  in 
money  or  beaver." 

'  Mass.  Col.  Records. 


22  HISTORICAL  ACCOUNT  OF 

1636.  Aware  that  the  board  at  pubUc  houses,  if  extravagant, 
^•""^''^  not  only  required  a  corresponding  price  from  the  traveller, 

but  also  put  him  in  the  hazard  of  contracting  a  taste  for 
similar  fare  at  his  own  house,  and  thus  promoted  a  costly 
mode  of  living,  ever  unfavorable  to  the  pecuniary  con- 
cerns of  community,  our  civil  fathers  thus  interpose  their 

1637.  authority : — "  Whearas  complaint   hath   bene   also   made 
^f*^'-  that  diverse  pore  people,  who  Avould  willingly  content 

themselves  with  meane  dyet  are  forced  to  take  such  dyet, 
as  is  tendered  them  at  12*^  the  meale  or  more ;  it  is  now 
ordered  that  every  keeper  of  such  Imi  or  comon  victualling 
house  shall  sell  and  alloAve  vnto  every  of  their  guests  such 
victuals  as  they  shall  call  for,  and  not  force  them  to  take 
more  or  other  then  they  desire,  bee  it  never  so  meane  and 
small  in  quantity,  and  shall  affoard  the  same  and  all  other 
dyet  at  reasonable  prizes  vpon  paine  of  such  fine  as  the 
Court  shall  inflict  according  to  the  measure  and  quantity 
of  the  ofl"ence." 

Vigilant  to  keep  down,  in  some  respects  not  yet  speci- 
fied, what  they  deem  extortion,  and  a  foe  to  sound  cur- 

1638.  rency,  the  Assistants  take  the  succeeding  step. — "  Whereas 
^^fo*^    there  hath  bene  divers  complaints  made  concerning  oppres- 

sion  in  wages  in  prizes  of  commodyties  in  smith's  worke,  in 
excessive  prizes  for  the  worke  of  druaghts  and  teames  and 
the  like,  to  the  great  dishonor  of  God,  the  scandell  of  the 
Gospel  and  the  greife  of  divers  of  God's  people  both  heare 
in  this  land  and  in  the  land  of  our  nativity,  the  Court 
takeing  into  consideration,  hath  ordered  it  that  it  shalbee 
duely  considered  by  Mr.  Endecott,  Mr.  Bellingham,  Mr. 
Herlakenden,  Mr.  Winthrope  junior,  Mr.  Saltonstall,  Mr. 
Bradstreet,  Mr.  Staughton,  Mr.  Peters,  Mr.  Noise,  &c.  to 
bring  into  the  General  Court  their  thoughts  for  the  remedi- 
ing  of  the  same." 

How  far  the  currency  would  go  to  meet  a  principal 
May  2.  expense  of  legislation,  may  be  perceived  in  this  law  : — "  It 
is  ordered  that  every  towne  shall  beare  the  charges  of  their 
owne  magistrates  and  deputies  and  to  alow  for  a  magis- 
trate 3/6  a  day  and  for  a  deputy  2/6  a  day  from  the  time 


MASSACHUSETTS  CUIUIENCY. 


23 


of  their  going  out  to  the  Court,  vutil  their  rcturne,  for  their  iQ^g 
dyet  and  lodging."  ^^-v-^ 

The  merchants  of  England  and  Irehmd  having  sent 
cargoes  hither  for  sale,  and  thereby  drained  the  colony 
of  its  cash,  the  legislature  pass  the  subjoined  resolve : — 
"Whereas  many  men  in  the  plantation  are  in  debt  and]  (549 
heare  is  not  money  sufficient  to  discharge  the  same  though  Oct. 
their  cattle  and  goods  should  bee  sould  for  halfe  their 
worth,  as  experience  hath  shewed  upon  some  late  execu- 
tions, whereby  a  great  part  of  the  people  in  the  country 
may  be  midone  and  yet  their  debts  not  satisfied,  though 
they  have  sufficient  upon  an  equall  valewation  to  pay  all 
and  live  comfortably  upon  the  rest.  It  is  therefore  ordered 
that  upon  every  execution  for  debts  past,  the  officer  shall 
take  land,  houses,  corne,  cattle,  fish  or  other  commodyties 
and  deliver  the  same  in  full  satisfaction  to  the  creditor  at 
such  prizes,  as  the  same  shall  bee  valewed  at  by  three 
understanding  and  indifferent  men  to  bee  chosen,  the  one 
by  the  creditor,  another  by  the  debtors  and  the  third  by 
the  marshall.  And  the  creditor  is  at  liberty  to  take  his 
choyce  of  what  goods  hee  will,  and  if  he  hath  not  suffi- 
cient goods  to  discharge  it,  then  hee  is  to  take  his  house 
or  land  as  aforesaid." 

In  reference  to  this  state  of  depression,  the  elder  Win- 
throp  thus  expresses  himself: — "The  scarcity  of  money 
made  a  great  change  in  all  commerce.  Merchants  would 
sell  no  ware,  but  for  money.  Men  could  not  pay 
their  debts,  though  they  had  enough.  Prices  of  land 
and  cattle  fell  soon  to  one  half  and  less,  yea,  to  a 
third,  and  after  to  one  fourth  part."  This  is  but  one  of 
the  many  scenes  of  adversity,  which  our  ancestors  expe- 
rienced, while  laying  the  ground  work  of  our  political 
heritage.  They  strove  to  render  it  the  means  of  their 
personal  improvement,  and  of  their  greater  fitness  to  receive 
and  use  the  mercies  of  Providence.  In  this  they  were 
eminently  wise.  Well  for  us,  if  recent  embarassments 
lead  us  to  imitate  their  example.  It  should,  also,  be  a 
dutiful  stimulus  for  us  to  know,  that  our  sires  breasted 
higher  and  stronger  waves,  stood  louder  and  more  deso- 


24 


HISTORICAL  ACCOUNT  OF 


1640.  lating  storms,  than  we  have  been  called  to  meet,  and  still 

^"""^^  held  on  their  way  commendably  and  perseveringly. 

Oct.        The  want  of  coin  enhances  the  rate  of  wampum,     "  It 

is  ordered,  that  white  wampompeage  shall  passe  at  four  a 

penny  and  blew  at  two  a  penny  and  not  above    12'^  at  a 

time  except  the  receiver  desire  more." 

In  conformity  with  a  regulation,  now  becoming  more 
particular  and  frequent  than  before,  the  General  Court  fix 
the  price  of  the  subsequent  articles,  as  part  of  the  circu- 
lating medium.  Indian  corn  at  4',  summer  wheat  6% 
rye  and  barley  5%  and  peas  6'  a  bushel.  Simply  con- 
sidered as  aliments  of  life,  it  is  well  known  that  these 
products  have  far  more  intrinsic  worth  than  the  finest 
gold  or  the  pm*est  diamonds.  Place  the  issues  of  Potosian 
mines,  in  ever  so  large  quantities,  before  a  people  incapa- 
ble of  procuring  supplies  for  their  appetite,  and  what  will 
they  profit  them  ?  To  some  extent,  like  Esau,  they  would 
exclaim — "  Behold,  we  are  at  the  point  to  die  ;"  give  us 
nourishment,  silver  and  gold  cannot  sustain  us.  This  is 
an  indication,  that  the  practice  of  former  years,  for  embrac- 
ing within  the  range  of  currency,  necessary  as  well  as 
artificial  representations  of  property,  was  no  great  depar- 
ture from  sound  discretion.  We  are  told,  that  while  the 
mania  of  speculation  lately  filled  many  minds  with  noth- 
ing but  golden  dreams,  the  Messrs.  Josephs  of  New  York 
forwarded  a  schedule  of  various  stocks  to  the  Rothschilds 
of  Em-ope.  The  reply  of  these  shrewd  bankers  was, 
"  We  don't  think  much  of  a  country  that  imports  its 
bread."  This  rebuke  should  be  heard  and  improved  by 
our  Republic,  so  that,  however  she  may  not  raise  grain 
for  currency,  she  may  do  it  to  feed  her  millions  and  give 
stability  to  her  pecuniary  interests. 

With  reference  to  the  legal  premium  allowed  for  the 
loan  of  currency,  it  had  been  eight  per  cent.,  and  so  con- 
tinues till  a  short  time  after  the  second  charter.  The 
occasional  necessities  for  this  period,  however,  did  not 
always  keep  Avithin  the  limits  of  the  statute. 
1041.  To  enlarge  the  funds  of  exchange  and  aid  to  cancel  the 
^2^^  public  debts,  the  civil  authorities  let  out  the  wampum 


MASSACHUSETTS  CURRENCY. 


25 


trade  as  well  as  that  of  fiu",  to  a  certain  company.  For  154 1. 
this  privilege,  the  stockholders  ai-e  to  reserve  one-twen-  -"''^ — 
tieth  of  all  their  peltry  for  the  Colonial  treasnry,  and  also 
to  purcliase  whatever  wampum  the  college  may  have  paid 
to  it,  if  not  exceeding  at  one  time  the  smn  of  £25.  One 
of  the  same  association  is  authorized  to  collect  wampum, 
due  the  government  as  tribute,  from  the  Block  Island  and 
other  Indians.  The  method  here  stated,  of  adding  to 
the  cmTency  by  yearly  payments  from  the  natives,  as  a 
bonus  for  the  protection  afforded  them  and  an  acknowl- 
edgment of  their  subjection,  constituted  a  considerable 
revenue. 

To  prevent  taking  advantage  of  persons,^  forced  to  pay  jy^g 
the  demands  upon  them  in  live  stock,  the  Coiu-t  adopt  the  10- 
succeeding  method  : — "  Whereas  it  hath  appeared  to  this 
Court,  that  there  hath  bene  much  difference  in  the  coun- 
trey  in  the  appraisement  of  cattle,  which  is  conceived  to 
arise  from  the  different  rules  which  men  have  gone  by  in 
such  appraisements,  this  Court  having  weighed  the  great 
inconvenience  which  may  follow  upon  such  appraisement, 
have  thought  fit  to  declare  what  is  conceived  to  bee  the 
true  rule  to  bee  followed  in  such  cases,  viz  :  that  it  is  not 
to  bee  iudged  the  market  or  true  price,  which  some  are 
forced  by  m'gent  necessity  to  sell  a  beast  for ;  but  what 
benefitt  may  arise  by  the  milke  and  increase  of  a  cowe, 
or  labor  of  an  oxe,  charges  of  hay  &c.  considered,  and  it  is 
desired  that  all  men  will  endeavour  to  frame  their  com- 
merce according  to  this  rule." 

As  a  great  reduction  had  taken  place  in  the  price  of  June 
corn,  cattle  and  other  produce,  and  money  was  scarce, 
workmen  are  required  to  graduate  the  price  of  their  labor 
accordingly. 

^In  order  to  accommodate  persons  who  drive  cattle  to 
Boston,  for  the  payment  of  public  rates,  as  well  as  for 
other  purposes,  ^  "  so  that  they  be  weary,  or  hungry,  or  fall 
sick,  or  lame,  it  shall  be  lawful  to  rest  and  refresh  them 


■-) 


'  Massachusetts  Colony  Records.  ^  Colony  Laws,  p.  100. 

^  This  appears  to  have  been  after 
October,  1641. 

4 


26  HISTORICAL  ACCOUNT  OF 

1641.  foi*  ^  competent  time  in  any  open  place,  that  is  not  com, 
'■^^'^^  meacloAV,  or  inclosed  for  some  particular  use." 

^  The  civil  authorities,  constrained  to  compensate  those 
whom  they  employed,  in  the  kind  they  received,  order, 
that  250  bushels  of  corn  shall  be  delivered  to  the  gmmer 
of  the  castle  for  his  salary. 

1642.  Among  the  coins  in  good  credit  with  oiu"  ancestors,  are 
Sept.  g^Qii  as  the  subjoined  enactment  specifies  : — "  This  Comt 

considering  the  oft  occasions  wee  have  of  trading  with 
the  Hollanders  at  the  Dutch  Plantation  and  otherwise, 
therefore  order,  that  the  Holland  ducatoon  being  worth 
three  gilders  shalbee  cm'rant  at  6'  in  all  payments  within 
this  jurisdicon.  The  rix-doUars  being  two  and  half  gilders 
shalbee  likewise  ciu-rant  at  5',  and  the  ryall-of-eight  shalbee 
also  currant  at  5^"  The  name  of  these  coins  was  more 
frequently  heard  than  they  were  seen  and  handled. 

1644.  While  there   was  impoverishment  of  estate,  measiu'es 
^^'   were  taken  to  enrich  the  intellect.     In  compliance  with 

advice  given  by  commissioners  of  the  United  Colonies,  the 
Legislatm'e  order,  that  each  family  contribute  a  peck  of 
corn,  or  12'^  in  money,  "  to  help  forward  the  mainte- 
nance of  poor  scholars  in  the  colledge."  This  option,  as 
to  the  sorts  of  circulating  medium,  was  exercised  more 
fully  in  bestowing  the  products  of  the  field  than  in  the 
proceeds  of  the  mine. 

Speaking  of  an  assessment  laid  on  the  several  towns  to 
defray  the  country  charges,  the  Coiu-t  thus  express  them- 

1645.  selves  : — "  This  levy  of  £616  15/,  each  Towne's  propor- 
May   tion  is,  as   above  expressed.     It    is  determined  y*^   each 

Towne  shall  pay  y®  one  halfe  of  their  rate  to  y "^  treasiu-er 
within  three  months  in  cattle  to  be  valued  by  three  men 
indifferently  chosen  by  y*"  treasurer  and  owner  thereof, 
.  in  beaver,  money,  Avheate  at  4%  barley  at  4?,  rye  3/6, 
pease  3/6,  come  2/8,  and  y^  other  halfe  at  or  before  y^ 
last  of  y®  first  month  next." 

There  was  a  great  and  fearful  embarrassment  as  to  hard 
money  and  every  species  of  exchange.  A  main  cause  of 
this   was,  that   the   foundations   of  all   confidence   were 

'  Massachusetts  Colony  Recoids. 


MASSACHUSETTS  CURRENCY.  27 

broken  up,  and  inhabitants  continually  emigrated  to  other  1(545 
parts,  in  consequence  of  the  contentions  in  England  ^^^-^^ 
between  the  Royalists  and  Parliament.  The  head  had 
become  confused  by  jarring  elements,  and  each  of  its 
members  was  deprived  of  its  guide,  and  compelled  to  depend 
on  its  own  resom'ces.  Nor  did  so  thick  a  darkness,  resting 
on  the  whole  face  of  the  comitry,  speedily  pass  away. 
To  this  point  we  have  the  relation  of  Governor  -Winthrop. 
"  I  may  report  a  passage  between  one  of  Rowley  and  his 
servant.  The  master  being  forced  to  sell  a  pair  of  his 
oxen  to  pay  his  servant  his  wages,  told  his  servant  he 
could  keep  him  no  longer,  not  knowing  how  to  pay  him 
next  year.  The  servant  answered  him,  he  could  serve  him 
for  more  of  his  cattle.  But  what  shall  I  do  (saith  the 
master)  when  all  my  cattle  are  gone  ?  The  servant  replied, 
you  shall  then  serve  me,  and  so  you  may  have  yom-  cattle 
again."  ^ 

From  so  distressed  a  condition  of  the  civilized,  we 
look  to  one  of  the  instances,  in  Avhich  the  riches  of  the 
untutored  natives  frequently  took  wings  and  flew  away. 
"  Sagamore  Raynowet  ~  for  consenting  to  y®  Narragansetts  Oct. 
was  fined  ten  fathom  of  wampom,  to  pay  five  fathom  y' 
yeare  and  five  fathom  y'^  next  year,  and  he  was  admon- 
ished never  to  do  the  like,  if  he  did,  to  be  cramed." 

With  regard  to  such  money,  it  began  to  be  a  common 
thing  for  inventories  of  deceased  Colonists  to  have  among 
their  various  items  of  accomit,  particular  smns  of  wam- 
pumpeage. 

For  the  purpose  of  preventing  the  injury  of  pecmiiary 
interests,  it  is  enacted,  that  any  individual  forging  notes  of 
hand,  or  other  paper  relative  to  property,  ^"  shall  stand  ia  1(546. 
the  pilory  tliree  seuerall  lecture  days,  and  render  double   Nov. 
damages  to  the  party  wronged,  and  disabled  to  give  any 
evidence  or  verdict  to  any  Courteor  Magistrate." 

That  we  may  have  knowledge  of  the  prices  at  which  live 
stock  was  estimated,  either  for  a  medium  of  exchange  or 
otherwise,  the  succeeding  rule  is  presented.     "* "  For  y'' 

>  Winthrop,  vol.  i.  p.  220.  ^  Colony  Laws,  p.  155. 

2  Mass.  Col.  Records.  ■•  Mass.  Col.  Records. 


28 


HISTORICAL  ACCOUNT  OF 


1646.  avoiding  of  all  complaints  by  reason  of  nnequall  rates 
^'^^  either  of  towns  or  persons  occasioned  through  y®  want  of 
4.  one  generall  way  and  rule  of  rateing  through  out  y*" 
countrey  and  y'  levies  hereafter  may  bee  more  easy,  equall 
and  certaine  ; — It  is  hereby  ordered,  y*  in  all  publike  rates 
(till  this  Courte  take  further  order  therein)  all  sorts  of 
cattle  shalbe  valued,  as  hereafter  is  exprest, — viz  :  cowes 
of  four  yeeres  ould  and  upward  £5;  heifers  and  steers, 
betwixt  three  and  four  yeeres  ould  £4  ; — heifers  and  steers, 
between  two  and  three  yeeres  ould  50%  and  between  one 
and  two  yeeres  ould  30= ;  oxen  of  four  yeeres  ould  and 
upward  £6  ;  horses  and  mares  of  four  yeeres  ould  and 
upward  £7;  of  three  yeeres  ould  £5;  betwixt  two  and 
three  yeers  ould  £3  ;  betwixt  one  and  two  yeers  ould  40'  ; 
sheepe  above  a  yeere  ould  30^ ;  goats  above  a  yeare  ould 
8' ;  swine  above  a  year  old  20' ;  ases  above  a  yeere  ould 
40',"  &/C.  Such  estimations  were  repeatedly  made  by  the 
General  Court.  These,  just  mentioned,  are  very  much 
below  what  they  were  prior  to  1640. 

While  peltry  was  desired  and  sought  as  a  staple  com- 
modity of  exchange,  the  Govermnent,  to  help  supply  their 
,g.-.  exhausted  treasury,  make  the  ensuing  requisition.  ^  "  Or- 
Nov  dered  that  the  trading  establishments  for  traffic  with 
Indians  shall  be  contributory  to  the  public  charges,  'and 
pay  two  pence  for  every  beaver,  otter,  bear,  and  moose 
skin,  or  forfeit  the  same." 

That  we  may  have  an  idea  how  the  shell  currency  of 
the  natives  was  prepared  for  ready  exchange,  we  are  pre- 

1648.  sented  with  the  ensuing  regulation: — ~"It  is  ordered  for 
triall  till  the  next  Court,  that  all  passable  or  payable  peage 
iienceforth  shalbe  intire  without  breaches,  both  the  white 
and  black,  without  deforminge  spotts,  sutably  strunge  in 
eight  knowne  parcells,  l-^,  3'^,  12*^,  5%  in  white ;  2^  6'^,  2/6'^, 
and  10',  in  blacke." 

It   appears   that   while   coin  is   rarely   met   with,  our 

1649.  exchequer  has  more  of  the  Indian  money  than  they  can 
2^^  well  manage.     It  is  enacted,  "  that  it  shall  not  be  in  the 

»  Colony  Laws.  2  Mass.  Col.  Records. 


Oct. 
18. 


MASSACHli  SETTS  CURRENCY. 


29 


liberty  of  any  townc,  or  person  to  pay  peage  to  their  1549^ 
country  rate,  nor  sliall  tlic  Treasurer  accept  thereof."  ^^^ 
This  example  of  the  Government  is  soon  imitated  by  the 
people.  To  arrest  the  progress  of  such  a  consequence,  an 
injunction  of  the  Court  is  issued.  Its  words  are, — "  It  is 
ordered,  that  wampampeage  shall  passe  current  in  pay- 
ment of  debts  to  the  vallew  of  forty  shillings ;  the  white 
at  eight  a  penny  and  the  black  at  four — so  as  they  be 
entire  and  without  breaches  and  deforming  spots,  except 
in  payment  of  countrye  rates  to  the  Treasurer." 

As  specie  still  remains  inconveniently  scarce,  one 
reason  for  it  is  the  vigilance  with  which  the  authorities  of 
England  prevent  its  exportation  hither.  In  the  act  of 
Parliament  for  incorporating  the  Society  to  Promote  the 
Gospel  in  this  country,  and  thus  patronize  the  labors  of 
Eliot,  Mayhew  and  others  among  the  Indians,  there  is  the 
subsequent  clause.  Collections  are  to  be  made  in  the 
Churches  of  England  and  from  house  to  house,  ^  "  provided  July 
the  act  extend  not  to  the  enabling  or  allowing  of  trans-  ^^' 
portation  of  any  gold,  silver,  plate,  bullion  or  other  com- 
modities, prohibited  by  the  laws  and  statutes  of  this 
nation." 

As  grain  and  live  stock,  collected  for  Colonial  taxes, 
were  customarily  brought  to  the  Treasurer  for  being 
estimated,  and  such  a  practice  not  giving  general  satisfac- 
tion, the  Deputies  pass  the  subjoined  resolve.  ^  "  For  a  1650. 
more  equal  way  in  the  appraising  of  cattle  and  other  goods  ^^^' 
to  be  paid  in  the  several  Towns  for  their  country  rates, 
and  that  the  Constables  be  not  put  to  bring  such  goods  to 
the  Treasurer  for  appraisement,"  it  is  required  that  a  fit 
person  be  employed  in  each  town  for  this  business.  The 
Magistrates  concur,  if  the  Treasm^er  appoint  one  appraiser, 
the  owner  of  the  property  another,  and  the  Marshal  be 
the  third. 

At  this  period,  a  change  takes  place  in  the  pecuniary 
concerns  of  Massachusetts,  which  is  in  greater  harmony 
with  modern  predilections,  than  others  previously  named. 

*  Hazard.  -Mass.  Archives — Pecuniary,  vol.  i. 


30  HISTORICAL  ACCOUNT  OF 

1650.  Perceiving  that  European  merchants  still  drew  from  this 
■-^'-'^^  country  the  specie,  derived  from  the  Dutch,  Western 
Islands,  and  elsewhere,  the  Legislature  determined  to  set 
up  a  mint  of  their  own.  ^  An  additional  cause  for  such  a 
piu-pose,  is,  that  our  vessels,  which  traded  to  the  West 
Indies,  took  considerable  quantities  of  "light  Spanish 
coyne,  whereby  many  people  were  cousened,  and  the 
Colony  in  danger  of  being  undone  theireby ; "  and  to 
prevent  this  deception,  it  was  deemed  requisite  to  have 
this  coin  melted  down  here,  and  stamped  according  to  its 
weight  and  value.  Hutchinson  informs  us,  that  our 
commerce  to  the  YV^est  Indies  brought  home  part  of  the 
bullion,  talien  by  numerous  buccaneers  from  the  Spaniards 
and  circulated  there,  and  this  was  another  call  for  our 
fathers  to  make  their  own  coin.  Besides,  our  ancestors 
were  induced  so  to  do,  because  they  supposed  the  oppor- 
tunity for  it,  more  promising  than  any  which  might  be 
expected  for  a  long  time  to  come.  It  was  but  recently, 
that  Parliament  had  proposed  to  exchange  the  Patent  of 
this  Colony  for  a  new  one,  and  thus  showed  an  inclina- 
tion to  draw  cords  of  subjection  more  closely  around  the 
people  here.  A  fui'ther  consideration  was,  that  our  fore- 
fathers felt  themselves  as  much  justified  in  being  inde- 
pendent of  Cromwell,  as  he  was  in  throwing  olf  the  yoke 
of  Royalty.  Hence  it  followed,  that  so  far  as  they  could, 
without  coming  to  an  open  rupture  with  him,  they 
declined  the  commital  of  themselves  to  his  policy,  and 
acted  for  the  prosperity  of  their  own  Commonwealth. 

Their  intention  to  establish  a  mint,  was  accompanied 
with  circmnstances  which  greatly  ward  off  from  them  the 
charge  of  treason,  so  often  brought  against^them  after  the 
fall  of  the  Cromwell  administration,  and  inconsiderately 
repeated  by  Robertson  and  other  historians.  Still  it  is 
evident,  from  the  manner  in  which  our  ancestors  subse- 
quently defended  themselves  against  the  charge  of  exercis- 
ing a  right  of  the  throne,  by  issuing  specie  of  their  own 
manufactm-e,  that  they  felt  the  force  of  the  position,  that 

'  Massachusetts  Archives— Political  vol. 


MASSACHUSETTS  CURRENCY.  31 

coining  money  in  all  States   belonged  to  the   supreme  ic52. 
power  thereof.  ~--/^- 

With  respect  to  such  an  institution  the  General  Court 
give  their  own  views.     ^ "  It  is  ordered,  and  by  the  author-   ^J^ 
itye  of  this  Courte  enacted,  that  the  printed  order  about 
money  shall  be  in  force  vntil  the  first  of  September  next  and 
no  longer.     And  from  and  after  the  first  of  September  next 
and  no  longer,  the  mony  hereafter  appointed  and  expressed 
shall  be  the  current  mony  of  this  Commonwealth  and  no 
other,  vnless  English,  (except  the  receivers  consent  there- 
unto. )     In  pursuance  of  the  intent  of  this  Coiu'tc  herein, 
be  it  fm-ther  ordered  and  enacted  by  the  authoritye  of  this 
Com-te,  that  all  persons  whatsoeuer  have  libertye  to  bring 
in  vnto  the  mint  howse  at  Boston,  all  bullyon,   plate  or 
Spanish  coyne,  there  to  be  melted  and  brought  to  the  allay 
of  starhng  silver  by  John  Hull,  master  of  the  said  mint  and 
his  sworne  officers,  and  by  him  to  be  coyned  into  twelve 
penny,  six  penny,  three  penny  peeces,  which  shall  be  for  • 
forme  flatt  and  square  on  the  sides,  and  stamped  on  the  one 
side  with  NE,  and  on  the  other  side,  with  the  figure  xii"*, 
vi'^,  and  iii'',  according  to  the  valew  of  each  peece,  together 
with  a  privy  marke,  which  shall  be  appointed  euery  three 
months  by  the  Gouernor,  and  knowne  only  to  him  and 
the  sworne  officers  of  the  mint.     And  fmlher,  the  sayd 
master  of  the  mint  aforesaid  is  hereby  required  to  coyne 
all  the  said  money  of  good  silver  of  the  just  allay  of  new 
starling  English  mony,  and  for  valew  to  stampe  two  pence 
in  a  shilling  of  less  valew  than  the  present  English  coyne, 
and  the  lesser  peeces  proportionably.     And  all  such  coyne, 
as  aforesaid,  shall  be  acknowledged  to   be    the  cm'rant 
coyne  of  this  Commonwealth,  and  passe  from  man  to  man 
in  ail  payments  accordingly,  within  this  jurisdiccon  only. 
And  the  mint  master  for  himselfe  and  officers,  for  their 
paynes  and  labom-  in  melting  and  refining  and  coyning,  is 
allowed  to  take  one  shilling  out  of  every  twenty  shillings 
which  he  shah  stampe — and  it  shall  be  in  the   liberty  of 
any  person  who  brings  into  the  mint  howse  any  bullion, 
plate  or  Spanish  coyne,  to  be  present  and  see  the  same 

*  Mass.  Col.  Records. 


32  HISTORICAL  ACCOUNT  OF 

1652.  melted,  refined  and  alloyed,  and  then  to  take  a  receipt  of 
'■^^''^^  the  master  of  the  mint  for  the  weight  of  that  which  is 
good  silver  alloyed  as  aforesaid,  for  which  the  mint  master 
shall  deliver  him  the  like  weight  in  currant  mony,  viz. 
euery  shilling  to  weigh  three  penny  troy  weight  and  lesser 
pieces  proportionably,  deducting  allowance  for  coinage  as 
before  expressed.  And  that  this  order,  being  of  so  great 
concernment,  may  not  in  any  particular  thereof  fall  to  the 
ground,  it  is  further  ordered  that  Mr  Richard  Bellingham, 
Mr  Wm  Hibbens,  Mr  Edward  Rawson,  Capt  John  Leverett 
and  Mr  Thomas  Clarke,  be  a  committe  appointed  by  this 
Court  to  appoint  the  mint  howse  in  some  convenient  place 
in  Boston,  to  give  John  Hull  master  of  the  mint  the  oath 
suitable  to  his  place,  and  to  approve  of  all  other  officers 
and  determine  what  else  shall  appeare  to  them  necessary 
to  be  done  for  the  carrying  an  end  of  the  whole  order." 

This  document,  as  will  appear  from  the  sequel,  was  of 
no  trivial  results  to  our  Colonial  authorities.  It  also  throws 
light  on  the  hitherto  obscure  and  unsettled  question  — 
When  did  the  custom  of  computing  in  Old  England  cur- 
rency go  down  in  our  country  ?  It  is  plain  from  the 
legislative  enactments,  that  there  was  a  departure  in  Mas- 
sachusetts from  the  method  of  calculating  in  Old  England 
sterling,  immediately  in  succession  to  Sept.  1,  1652.  But 
the  appointed  standard  of  om-  first  coin  did  not  vary  so 
much,  in  the  estimation  of  our  Legislature,  from  that  of  the 
London  mint,  as  it  soon  did.  Still  from  the  alloy,  expense 
and  wastage  of  the  bullion  here,  reckoned  by  European 
financiers  as  22^  per  cent.,  and  also  the  prejudice  in  the 
mother  country  against  our  coin,  it  would  be  very  proba- 
ble, had  we  no  other  proof,  that  the  difference  of  exchange 
between  om'  coin  and  that  of  London,  speedily  amounted 
to  25  per  cent.  In  addition  to  this,  however,  we  have 
the  report  of  a  Committee,  designated  by  the  General 
Court  in  1654,  which  expressly  states,  that  our  coin  passed 
abroad  at  the  discount  of  one  fourth  part  of  its  home  value. 
Hence,  there  is  reason  to  believe,  that  no  sooner  did  our 
coin  reach  the  London  market,  than  it  was  valued  at  a 
rate  one  quarter  lower  than  theirs,  and   that   thus   the 


MASSACHUSETTS  CURRENCY.  33 

Standard  of  New  England  currency  was  fixed  as  early  as  1652. 
1G53.     True,  this  pecuniary  alteration  has  been  allotted  ^^^'"^ 
to  1690,  when  our  government  ordered  bills  of  credit  to 
be  emitted.     But  such  an  assumption  docs  not  appear  to  be 
confirmed  by  the  data  already  cited. 

Not  satisfied  with  the  means  of  obtaining  an  increased 
medium  of  circulation  for  purposes  of  traffic,  serious 
thoughts  are  entertained  of  resorting  to  paper  money,  in 
addition  to  what  had  been  already  issued  by  individuals. 
This,  as  well  as  other  concerns  of  a  similar  nature,  is  appa- 
rent in  the  ensuing  extract.  It  is  a  report  accepted  by  the 
Legislature.  Its  language  is,  ^  "  What  hath  bin  thought  of  June, 
by  any  for  raiseing  a  Banke  or  engaging  in  generall  trade 
or  relating  to  monies  in  regard  of  the  badnesse  of  it,  or 
highnesse  or  lownesse  of  it,  with  very  many  other  matters 
tending  to  the  promoting  and  well  regulating  of  trade, 
will  by  this  means  be  ripened,  and  things  reduced  to  a 
more  comfortable  state,  than  wee  now  find." 

In  a  subsequent  apology  to  the  King,  our  fathers,  allud- 
ing to  this  period,  say,  ^^  For  some  years  paper  bills  passed 
for  payment  of  debts,  which  were  very  subject  to  be  lost, 
rent  or  counterfeited,  and  other  inconveniences." 

Relative  to  the  further  promotion  of  the  mint. — The 
following  is  the  oath  administered  to  the  mint  masters. 
3 "  Whereas  you,  John  Hull  and  Robert  Saunderson,  are  n. 
appointed  by  the  order  of  the  Generall  Courte,  bearing 
date  the  10"'  of  June,  1652,  to  be  oflicers  for  the  Massa- 
chusetts Jurisdiccon  in  New  England,  for  the  melting, 
refyning  and  cojning  of  silver,  you  doe  here  sweare  by 
the  great  name  of  the  Euerlasting  God,  that  you  will 
faithfully  and  diligently  performe  the  duty  of  your  places, 
that  all  mony  cojned  by  you  shall  be  of  the  just  alloy  of 
y«  English  cojne,  that  euery  shilling  shall  be  of  due 
weight,  viz.  three  penny  troj  weight,  and  all  other  peeces 
proportionably,  according  to  the  order  of  Courte  so  neere 
as  you  can.     So  helpe  you  God." 

"  At  a  meeting  of  the  Committee  for  carrying  an  end  of    go 

>  Mass.  Archives.  ^  Massachusetls    Archives — Pecu- 

"  Mass.  Archives— PoUlical  vol.  Mivy,  vol.  i. 


34 


HISTORICAL  ACCOUNT  OF 


1652.  the  order  concerning  mony,  it  was  determined, — First, 
-^^^"^^  that  there  should  be  a  mint  howse  and  all  tooles  and 
implements  necessary  thereto,  built  and  procured  at  the 
comitrje's  charge,  which  is  in  acting  and  a  declaration 
accordingly  made.  Second,  that  warrants  should  issue 
out  to  the  constables  of  Boston  for  the  pressing  of  Isacke 
Culljmore  for  that  service,  which  was  done.  Third,  that 
another  warrant  should  issue  out  to  the  sajd  Isacke 
Culljmore  for  the  empowring  him  to  presse  other  work- 
men, carpenters,  &c.  as  may  joyne  with  him  in  the 
countrje's  service,  which  was  done.  Fourth,  that  the 
sajd  mint  howse  shall  be  sett  vppon  the  land  of  the  sajd 
John  Hull,  and  alsoe  it  is  agreed  betwene  the  sajd  Com'® 
and  the  sajd  John  Hull,  that  whenever  either  by  his  death 
or  otherwise  the  sajd  John  Hull  shall  cease  to  be  the  mint 
master,  that  then  the  countrje  shall  have  the  ground  y® 
howse  stands  vppon  at  such  prize  as  two  indifferent  men 
equally  chosen  by  the  countrje  and  sajd  John  Hull  or  his 
assignes,  shall  determine,  or  else  the  sajd  John  on  the  like 
termes  have  the  sajd  howse  as  two  indifferent  men  shall 
judge  it  to  be  worth  at  the  choice  of  the  countrje."  Here 
we  have  a  sample  of  the  manner  in  which  our  ancestors 
transacted  business.  Though  not  the  most  loving  friends 
of  royalty,  yet  they  had  no  small  spice  of  it  in  the  execu- 
tion of  their  orders.  With  them,  it  was  no  sooner  said 
than  done. 

As  to  the  building  for  the  manufacture  of  coin,  it  did 
not  call  in  requisition  the  talents  of  a  Sir  Christopher 
Wren — nor  would  it  fully  compare  with  many  stately 
piles  of  our  metropolis.  It  was  ordered  to  be  made  of 
wood,  to  be  sixteen  feet  square,  and  ten  feet  high.  No 
doubt  that  this  house,  however  circumscribed  in  its  mate- 
rials and  dimensions,  was  then  pointed  out  to  the  stranger 
as  an  object  of  more  than  ordinary  curiosity.  Certainly  it 
did  not  deserve  the  rebuke  of  an  adage,  common  in  that 
day,  "  Twelve  pence  laid  out  on  the  purse,  and  only  six 
pence  in  it." 

Scarcely  had  the  coin  of  our  Colony  seen  the  light,  and 
excited  the  gaze  of  unsatiated  curiosity,   before  it  was 


MASSACHUSETTS  CURRENCY. 


35 


beset  by  the   inventions  of  fraud.      Such   an  evil   was  i652. 
speedily  taken  in  hand  by  the  Legislature.     Their  words  -^^^^^^ 
follow.     ^ "  For  the  prevention  of  washing  or  clipping  of   Oct 
all  such  peices  of  money,  as  shall  be  cojncd  within  this     ^^' 
jurisdicon,  it  is  ordered  by  this  Courte  and  the  authoritie 
thereof,  that  henceforth  all  peices  of  money  cojned  afore- 
said,   shall  have  a  double  ring  on  either  side,  with  this 
inscription  —  Massachusetts,  and  a  tree  in  the  center  on 
the  one  side — and  New  England,  and  the  yeere  of  our 
Lord,  on  the  other  side."- 

With  all  the  exertions  of  the  civil  authorities  to  improve 
their  currency,  they  were  extremely  low  in  funds,  and 
constantly  looking  for  an  attack  from  a  Dutch  fleet.  On 
this  occasion,  their  language  is,  "As  the  comitrje  is  in  1654. 
debt,  no  stock  in  the  treasury,  no  meanes,  at  present,  3^^ 
to  raise  any,  so  that  workemen  cannot  be  procured  to 
finish  the  Castle,  which  yett  is  necessary  forthwith  to  be 
done,"  the  several  military  companies  must  do  it  ;  one 
division  of  them  by  having  each  of  their  soldiers  labor 
tliree  days  on  this  fortification,  and  another  by  being  indi- 
vidually assessed  4'  6*^. 

Thus  troubled  for  the  ^cant  of  money,  our  fathers  were 
also  troubled  about  the  little  which  was  circulated.  They 
saw,  that  however  they  had  their  coin  less  valuable  than 
foreign,  which  rather  tended  to  keej)  it  at  home,  still  it 
found  vents  enough  to  threaten  its  almost  entire  with- 
drawal from  our  shores.  To  hinder  a  result  of  this  kind, 
General  Court  adopt,  for  substance,  the  succeeding  report 
of  their  committee.  '^ "  Whereas  the  end  of  coyning  mony  12. 
within  this  Commonwealth  is  for  the  more  easy  managing 

'  General  Court  Records.  6uch  a  tree,  that  the  battle  of  Bunker 

-  A  pine  tree  appears  to  liave  been  Hill  was  fought  by  our  forces.     So 

a  favorite  sj'mbol  with  the  authorities  long  ago  as  when  the   Britons  paid 

of  Massachusetts.     Tliey  used   it  at  taxes  to  the  Romans,  they  used  the 

this  time,  when  expecting  that  events  coin,  among  others,  which  had  a  tree 

would  so  occur  in    England,  as  to  on  it,  and  which  Camden  supposes 

afford  them  an  opportunity  of  being  to  be  money  paid  for  assessments  on 

an  independent  people.     When  they  wood  land.     The   pine  tree,  as  used 

declared  themselves  free  from  British  by   our    immediate    ancestors,    was 

rule,  they  had  it   appointed  on   the  probably  more   as  a  sign  of  perma- 

State  flag,   April  11,  1776.     It  con-  nency  than  of  tributary  subjection, 
tinned  to  the  adoption  of  the  thirteen  ^  Massachusetts  Archives — Pecu- 

stripes.     Even    before   this  appoint-  niary,  vol.  i. 
ment,  it  was  under  tlie  colors  with 


36  HISTORICAL   ACCOUNT   OF 

1654.  the  traficquG  thereof  within  itself,  and  not  intended  to 
^"^ — '"^  malce  retournes  to  other  countrjes,  which  cannot  advance 
any  profitt  to  such  as  send  it,  but  rather  a  fowrth  part 
losse,  vnlesse  such  persons  doe  oppresse  and  extort  in  the 
sale  of  theire  goods,  to  make  vp  the  said  losse,  which 
practise  occasioned  heereby  (through  some  men's  prefer- 
ring theire  owne  gaine  before  publicke  good)  doth  bring 
an  vndervalue  vppon  all  commoditjes,  raised  among  om'- 
selues,  and  vtterly  frustrate  the  end  and  vse  of  mony 
amongst  vs."  Therefore  no  coin  of  this  Colony,  except 
20'  to  pay  each  individual's  expenses,  is  to  be  exported  on 
forfeiture  of  the  transgressor's  whole  estate.  They  further 
require,  that  a  searcher  for  money  be  appointed  in  every 
port  of  entry. 

Such  repeated  endeavors  to  keep  specie  from  being 
carried  out  of  the  country,  show  how  difficult  it  was  to 
have  legal  enactments  for  this  purpose  strictly  observed, 
when  the  balance  of  trade  came  in  conflict  with  them. 
Suidas  relates  the  legend,  that  Juno  told  the  Romans  that 
would  they  be  rich,  they  must  be  just.  So,  Avould  any 
people  be  just  to  themselves,  and  save  their  coin  from  being 
inordinately  drawn  from  them,  they  must  send,  at  least,  as 
much  abroad  in  commerce,  as  they  have  in  retm'n.  ^ "  A 
country,"  says  Montesquieu,  "  that  constantly  exports 
fewer  manufactures  or  commodities,  than  it  imports,  will 
soon  find  the  balance  sinking  ;  it  will  receive  less  and 
less,  till,  falling  into  extreme  poverty,  it  will  receive 
nothing  at  all." 

In  order  to  meet  the  exigencies  of  the  time,  and  to  con- 
tinue the  credit  of  various  articles  as  a  legal  tender,  the 
Aug.  ensuing  regulation  is  made  by  the  government.  ^"All 
contracts  for  mony,  corne,  cattle  or  ffish,  shalbe  satisfyed 
in  kind,  accordinge  to  covenant,  or  in  default  of  the  very 
kind  contracted  for,  in  one  of  said  kinds." 

Not  to  lose  sight  of  the  simpler  money  of  the  aborigines, 
we  present  the  ensuing  article.  In  the  first  particular 
account  issued  by  the  Colonial  Treasurer  for  the  public 
eye,  by  request  of  Boston  gentlemen,  who  said  as  to  what 

'  Esprit  de  Loix.  ^  Mass.  Archives — Pecuniary,  vol.  i. 


22. 


MASSACHUSETTS  CURRENCY.  37 

was  paid  in  rates,  "how  it  reached  its  end  is  best  knowne  i655. 
to  them,  who  had  the  disposeing  thereof,"  we  have  these  '~5a^ 
items  : — "  To  so  much   peage  bmuit  with  the  Treasurer's    20. 
house,  £35  10/.     By  IS  strings  of  peage  for  tribute,  at  6 
a  penny,  £45."     Thus  we  have  renewed  notice,  that  the 
currency  of  the  natives  was  not  yet  supplanted  by  the 
brighter  products  of  the  ore,  and  was  still  paid  as  the 
eai'nest  of  their  fealty. 

As  an  instance  of  trouble,  wliich  frequently  attended 
the  bringing  of  stock  to  om*  metropolis,  for  the  payment 
of  Colonial  rates,  we  have  the  story  of  Nicholas  Norton, 
late  Constable  of  Weymouth.  "  Yoiu:  petitioner  presented  i  e  5  5 . 
cattell  here  in  Boston,  which  was  refused  both  by  the  July. 
Treasmer  and  Capt.  Clarke,  and  when  we  had  spent  two 
or  three  days  thereabout  and  none  would  be  received,  we 
droue  home  the  said  cattell."  There  can  be  little  doubt 
but  that  this  complainant  might  have  traced  at  least  one 
half  of  his  perplexity  to  the  fact,  that  his  creatures  had  a 
very  striking  resemblance  to  "  Pharaoh's  lean  kine." 

As  a  sample  how  Collectors  were  forced  to  receive  1657. 
almost  every  article,  whether  the  products  of  agriculture 
or  maimfactm-e,  in  lieu  of  cash,  we  offer  the  following. 
John  Dickenson,  late  Constable  of  Salisbmy,  petitions 
General  Com-t,  that,  having  taken  hoards  in  payment  for 
taxes,  from  people  of  his  own  town,  because  they  had  no 
corn — and  Treasm-er  would  not  allow  him  so  much  for 
the  boards,  as  he  did — he  may  have  redress. 

To  promote  a  wider  diifusion  of  the  Indian  money,  as 
well  as  to  prevent  the  continuance  of  oppressive  monopoly, 
the  commissioners  of  the  United  Colonies  interpose  their 
authority  in  the  subsequent  case.  ^  Being  informed  that  1658. 
the  "Montackett"  sachem  had  liindered  the  Pequods  j^' 
from  getting  shells  to  make  wampum,  they  required  him 
to  suffer  his  red  brethren  to  share  in  such  a  privilege. 

It  seems  that  while  the  chief  men  of  our  Colonies  were 
thus  endeavoring  to  have  their  untutored  tributaries  deal 
with  even  handed  justice,  some  of  oiu:  own  people  com- 
promised between  their  conscience  and  covetousness  by 

'  Hazard. 


33  HISTORICAL   ACCOUNT   OF 

1(358.  paying   the  public  demands  in  the  worst  of  their  tithes. 

^-^^  Hence  an  order  was  issued  by  our  civil  fathers,  that  no 

19.     man  should  attempt  to  discharge  his  rates  with   '  lank ' 

cattle.^ 
May  '  That  we  may  have  an  impression  of  the  comparative 
cost,  which  occurred  in  the  transporting  of  the  grain  cur- 
rency to  the  j)lace  of  its  deposit,  the  succeeding  charge  is 
exhibited.  On  a  tax  of  £70  6'  8'',  to  be  answered  in 
"country  pay,"  by  the  town  of  Ipswich,  Richard  Russell, 
the  Treasurer,  charged  for  boatage  £3  6*,  which  was  some 
over  5  per  cent. 

The  mint  renewedly  invites  our  attention.  With  some, 
it  was  the  ideal  discovery  of  the  alchymist,  which  was  to 
make  riches  nearly  as  abundant  here,  as  they  were  when 
Solomon  "made  silver  to  be  in  Jerusalem  as  stones." 

But  whatever  speculations  were  indulged  in  reference 
to  it,  our  civil  authorities  watched  over  it,  with  com- 
^P  mendable  vigilance,  so  that  it  might  benefit  their  country 
as  much  as  possible.  ^  They  say — "  The  mint  master  is 
hereby  inioyned  of  the  first  bullion  that  comes  to  his  hand, 
to  coyne  two  penny  peeces  of  silver,  in  proportion  accord- 
ing to  the  iust  vallew  and  alloy  of  other  monys,  alowed 
here,  to  answer  the  occasions  of  the  contry  for  exchange  ; 
that  is,  the  first  yeare  fifty  pounds  in  such  small  mony  for 
every  hundred  pomids  by  him  to  be  coyned,  and  for  after 
time,  twenty  pounds  in  like  mony  annually  for  every 
hundred  pounds,  that  shalbee  coyned,  and  this  order  is  to 
continue  in  force  for  seaven  yeares." 

^  Stimulated  by  the  example  of  Massachusetts,  the  Colony 
of  Maryland  establish  a  mint.  They  however  decide, 
that  their  coin,  issued  from  such  an  establishment,  shall 
be  equivalent  to  English  sterling. 

^  Relative  to  our  own  specie,  an  interesting  tm'n  was 
given  by  Thomas  Temple — a  warm  friend  of  New  England 
and  Governor  of  Nova  Scotia — in  conversation  with  His 
Majesty,  Charles  H.  Being  introduced  to  the  King,  while 
on  a  visit  to  ^London,  he  was  permitted  to  kiss  his  hand. 

'  Colonial  Records.  ^  Chalmers. 

^  Massachusetts  Archives — Pecu-  ■•  Mass.  Archives  —  Political  vol. 

niary,  vol.  i.  Life  of  Thomas  Hollis. 


MASSACHUSETTS  CURRENCY.  39 

This  sovereign  discoiu-sed  with  him  on  the  state  of  affairs  i662. 
in  Massachusetts,  and  discovered  great  warmth  of  feehng  — '^^ 
against  them.  Among  other  things,  he  said,  that  they 
had  invaded  his  right  by  coining  money.  Governor 
Temple  told  him,  that  the  colonists  thought  it  no  crime 
to  make  money  for  their  own  use.  In  course  of  the  inter- 
view, Mr.  Temple  took  some  of  our  coin  from  his  pocket 
and  presented  it  to  the  king.  Seeing  a  tree  on  one  of 
the  pieces,  Charles  inquired  what  sort  of  a  tree  that  was. 
The  immediate  reply  was,  it  was  the  royal  oak,  which 
preserved  his  majesty's  life.  Such  an  answer  brought  the 
king  to  good  hmnor,  and  induced  him  to  hear  the  pleas 
which  the  governor  made  in  favor  of  our  colony.  It  is 
presumed  from  the  character  of  Mr.  Temple,  that  on  this 
occasion  he  intended  no  deceit,  but  a  pleasant,  figurative 
allusion  to  a  remarkable  preservation  of  his  majesty. 

Among  the  severe  trials  of  our  government,  was  their  1G65. 
being  called  to  an  account  by  the  royal  commisioners,  24; 
who  had  come  hither,  respecting  their  mint.  Thus  they 
had  the  fruit  of  the  dissatisfaction,  so  openly  expressed 
by  the  King  to  Governor  Temple.  The  commisioners 
declared,  according  to  the  generally  received  opinion  of 
Europe,  that  the  coining  of  money  was  a  royal  preroga- 
tive, for  the  usm-ping  of  which,  the  act  of  indemnity  was 
the  only  salvo.  They  bore  so  hard  on  our  civil  authori- 
ties, in  this  and  other  respects,  that  they  refused  any 
further  conference  with  them,  and  made  an  appeal  to  the 
throne.  In  this  docimient  we  have  the  ensuing  passage : — 
1"  Royal  Sir,  a  just  dependance  upon  and  allegiance  vnto  Aug. 
your  majestye  according  to  the  charter,  wee  have  and  doe  ^• 
professe  and  practise  and  have  by  our  oathes  of  allegiance 
to  your  majesty  confirmed.  But  to  be  placed  vpon  the 
sandy  foundations  of  a  blinde  obedience  vnto  that  arbi- 
trary, absolute  and  unlimited  power,  which  these  gentle- 
men (i.  e.  commissioners)  would  impose  vpon  us,  who  in 
their  actions  towards  us,  haue  carried  it,  not  as  indifferent 
persons   towards   us.      This,    as   it   is   contrary  to   your 

*  Massachusetts  Colony  Records. 


40  HISTORICAL  ACCOUNT  OF 

1665.  niajestye's  gracious  expressions  and  the  liberties  of  English- 
^^^•"^^  men,  so  wee  cannot  see  reason  to  submit  thereto." 

As  a  step  towards  softening  the  asperity  of  the    King — 

1666  ^^^^^   could  ill  brook  the  independence  of  our  ancestors 

Sept.  in  establishing  their  mint — they  order  "two  very  large 

■    masts,"  to  be  transported  to  London  for  his  majesty's 

Qp^    navy.     They  soon  add  to  this  present  a  ship  load  more  of 

11.    smaller  sized  spars.' 

However,  given  to. understand  by  the  royal  agents  from 
London,  that  their  continuance  of  coining  money  was 
contrary  to  the  pleasure  of  the  crown,  yet  our  rulers  did 
not  slack  in  their  exertions  for  its  furtherance.  Perceiving 
that  the  mint  masters,  Messrs.  Hull  and  Saunderson,  made 
large  profits  by  their  employment,  they  applied  to  them, 
by  a  committee,  to  pay  rent  for  their  use  of  the  building 
2gg7  and  apparatus.  A  report  is  made,  that  those  two  gentle- 
Oct.   men  will  allow  £40  for  past  occupation,  and  £10  annually 

in  future,  on  a  lease  of  seven  years. 
1068.  A  computation  being  made,  as  to  the  average  cost  of 
25^  transporting  the  produce  for  taxes,  from  different  parts  of 
the  colony  to  Boston,  it  was  found  to  be  not  less  than  one- 
tenth.  To  avoid,  in  some  degree,  such  loss,  the  Treasurer 
is  instructed  to  pay  the  colonial  creditors  out  of  the  com- 
modities collected  for  rates,  in  the  towns  where  they 
reside. 
Oct.  As  a  reason  for  repealing  an  act,  for  laying  a  duty  of  one 
per  cent,  on  imports  and  exports,  and  two  pence  on  each 
bushel  of  grain  from  adjacent  colonies,  a  petition  from 
Marblehead  to  General  Court,  holding  similar  ideas  with 
another  from  Salem,  has  the  ensuing  language  : — ^  "  If  the 
necessity  of  y*^  country  call  for  other  supply,  it  may  bee 
raised  one  mony  imported,  by  causing  peices  of  eight,  viz  : 
Pillar  Mexico  and  Seville  to  bee  valued  at  six  shillings  per 
peice  and  so  to  pass,  which  may  cause  plenty  of  it  amongst 
us."  Such  proposals,  in  one  form  or  another,  were  fre- 
quently made  in  order  to  regulate  the  medium  of  ex- 
change. 

'  Sir    Henry   Ashurst    and    other      there,  to    pay   for   the    expenses   of 
friends  of  our  Colony,  bein^r  in  Lon-      sending  tliese  presents  to  England, 
don,  are  empowered  to  hire  iil,OUO  -Mass.  Arcliives — Maritime, vol. i. 


MASSACHUSETTS  CURRENCY.  ^J 

The  following  is  the  caption  of  a  report  made  to  the  i(3(j9_ 
Assembly  relative  to  a  similar  subject : — ' ''  Being  sensible  ^J^^ 
of  the  great  necessitie  of  money  for  the  more  easie  and     2. 
equal  carrying  on  of  commerce  amongst  us,  and  finding 
that  coyning  hath  not  fully  answered  the  Court's  expecta- 
tions, but  there  still  remaynes  great  want  of  a  further 
supply  — ."     With  this  introduction,  a  proposal  is  made  to 
repeal  the   law,  which  forbad  all  foreign  coin,  except  of 
the  mother  country,  to  pass  current ;  and  to  make  each 
piece-of-eight,   made  of   the  finest   sterling  silver  at   6% 
and  its  halves,  quarters  and  eighths  in  like  proportion,  said 
other  money  at  the  same  rate.     This  plan  was  evidently 
promoted  by  the  petitions  previously  mentioned,  but  was 
not  approved  by  the  magistrates,  and  consequently  delayed 
to  be  enforced. 

To  meet  a  change  in  the  negotiations  of  business,  the  1670. 
subsequent  order  is  passed  : — -  "  Whereas  the  law  titled  ^^^ 
payments  doth  make  corne,  cattle  and  fish  equall  with 
money  and  to  be  payd  as  money,  when  money  is  indented 
for,  wliich,  at  that  time,  when  the  law  was  made,  was  as 
good  as  money,  but  now  is  otherwise  and  proveth  prejudi- 
cial! on  several  accounts,"  therefore  contracts  for  specie, 
shall  be  paid  in  specie. 

The  project  for  having  other  foreign  coin  pass  here  as 
well  as  that  of  England,  being  kept  on  the  tapis,  and 
becoming  increasingly  popular,  is  now  adopted.  "  Whereas  1672. 
peeces-of-eight  are  of  more  value  to  carry  out  of  the  ^'^^• 
country  then  they  will  yeild  to  mint  into  our  coyne,  by 
reason  whereof  peeces-of-eight  which  might  else  come  to 
coyning  are  carried  out  of  the  country,  It  is  therefore 
"ordered  by  this  Court  and  the  authority  thereof,  that  all 
peeces-of-eight,  that  are  full  weight  and  good  silver,  that 
is  of  six  shillings  of  N.  E.  money,  of  Mexico  Sevil  and 
Pillar,  and  so  all  less  peeces  of  each  sort  shall  passe  in  this 
jurisdicon  as  current  as  our  oune  money,  peeces-of-eight 
at  six  shillings  a  peece,  and  all  less  peeces  proportionably 
thereunto,  provided  that  all  such  peeces,  that  shall  passe  in 
this  jurisdicon   have   a  stampe   affixt  vpon   tliem,    which 

'  Mass.  Archives — Pecuniary,  vol.  i.  *  Colony  Records. 

G 


42 


HISTORICAL  ACCOUNT  OF 


2  372  shall  be  A^^,  to  evidence  that  they  are  of  right  alloy  and 

^■^-■^  due  weisht,  and  that  Mr.  John  Hull  and  Mi*.  Robert  Saun- 

derson,  or  either  of  them,  bee  the  persons  for  the  tryall 

and  stamping  of  such  money,  and   that   thereby  fower 

pence   vpon  the   pound   payd  for  the  rest,  one  fowerth 

thereof  to  the  office  and  the  rest  to  the  country  Treasurer." 

Pieces-of-eight  under  weight  of  6'  shall  pass  for  so  much 

of  N.  E.  money,  as  they  weigh,  and  "  that  it  be  impressed 

vpon  the  stampe  how  much  each  peece  doth  weigh,  in 

legible  figm-es  with  the  other  letters  on  the  same  and  of 

the  same  alloy." 

Notwithstanding  the  obstructions  thrown  in  the  way  of 

the  mint  here   by  royal  authority,  it  is  leased  again,  in 

J 675.  accordance  with  the  subsequent  report: — "That  the  for- 

J"'y   mer  masters  of  the  mint,  Robert   Saunderson  and  John 
9. 

Hull,  doe  continue  to  mint  what  silver  bullion  shall  come 

in  for  this  seven  yeares  next  to  come,  if  either  of  them 
hue  so  long,  and  doe  receive  of  those  that  bring  bullion  to 
the  mint  as  a  full  reward  for  their  pains  twelve  pence  for 
every  twenty  shillings,  and  three  pence  for  the  waste  of 
every  three  ounces  of  sterling  silver  that  they  shall  so 
mint,  viz :  fiueteen  pence  in  the  whole  for  euery  twenty 
shillings,  and  the  sayd  minters  are  to  pay  into  the  Trea- 
surer of  the  Country  in  money  twenty  pounds  per  ami. 
during  abouesaid  terme." 

So  pressing  was  the  want  of  specie,  experienced  by  the 
23  ■  government,  in  consequence  of  Philip's  war,  they  offer  to 
abate  twenty-five  per  cent,  on  taxes,  payable  in  grain,  to 
all  who  advance  cash.  ^  Dming  the  same  disastrous  con- 
test, such  discount  reached  one  half  the  estimated  price  of 
comitry  pay. 

A  mode,  having  some  approximation  to  paper  currency, 
is  now  introduced.  It  is  thus  expressed  by  the  Legisla- 
Nov.  ture: — "For  prevention  of  the  charge  and  trouble  of 
^'  transportation  of  the  rates  to  be  leveyed,  to  the  Treasurer 
of  the  country,  as  also  matter  of  convenience,  therein 
appearing,  It  is  ordered,  that  bills  for  wages,  horses,  pro- 
visions, &/C.  being  regularly  passed  to  the  sayd  Treasurer, 

^  Massachusetts  Colony  Records. 


MASSACHUSETTS  CURRENCY.  43 


the  Treasurer  vpon  the  desire  of  persons  concerned,  shall  1(575, 
repasse  bills  to  the  Constables  of  such  Townes,  where  •-^-'■^^ 
sums  are  due  vpon  the  aforesayd  accounts." 

As  a  means  of  lessening  the  difficulties,  which  attend  the 
specie  of  the  colony,  a  committee  of  the  Legislature  make 
the  ensuing  report: — ^"In  pursuance  of  an  order  to  obtain  1G77. 
the  coynage  of  bullion  and  stoppage  of  transportation  of  2. 
money,  we  have  discom'sed  Cap.  Hull  and  others,  and  find 
no  other  expedient  but  the  raysing  of  the  valine  of  our 
coyns  or  making  our  money  for  future  higher  by  nine  or 
twelve  grains,  or  making  the  mint  free ;  for  the  first,  if  it 
be  done,  three  half  pence  in  the  shilling  and  the  law  for 
exportation  of  money  duly  attended,  we  hope  it  may 
obtain  what  is  desired, — the  matter  of  paying  coynage  out 
of  the  Treasury,  we  find  the  charge  uncertain,  but  great, 
and  both  expedients  attended  with  difficulty,  and  there- 
fore judge  them  worthy  of  further  consideration.  In  the 
mean  time,  we  judge  it  meet  to  double  the  custom  of  all 
wines,  brandy  and  rhum  imported,  which  being  drawn 
into  the  Treasury,  part  of  it  may  pay  the  charges  of  a  free 
mint,  if  the  Court  afterwards  see  meet  to  improve  the 
same." 

Still  perceiving  that  the  finger  of  royal  displeasure  was 
pointed  at  them,  on  account  of  their  mint  and  other  con- 
cerns, the  General  Comt  order,  that  a  peace  offering  be 
made  to  his  majesty.  ^It  consists  of  these  particulars,  Oct. 
"tenn  barrels  of  cranburyes,  two  hogsheads  of  speciall 
good  sampe,  and  three  thousand  of  cod  fish." 

To  their  agents  in  London,  our  rulers  thus  express  them- 
selves:— "As  for  that  particular  of  our  coyning  money  1678. 
with  our  oune  impress,  his  majesty  of  his  gracious  clem-  ^^^' 
ency  towards  us,  hath  not  been  pleased,  as  yet,  to  declare 
his  pleasm-e  therein.  And  wee  have  confidence,  that 
when  he  shall  truly  be  informed  of  the  simplicity  of  our 
actings,  the  public  joy  thereof  to  his  subjects  here,  and  the 
great  damage  that  the  stoppage  thereof  will  inevitably  be 
to  our  necessary  commerce  and  abatement  of  his  majesty's 
customs  yearly  accruing  by  our  merchants  and  navigation 

'  Mass.  Archives — Pecuniary,  vol.  i.  '  Mass.  Colony  Records. 


44  HISTORICAL  ACCOUNT  OF 

1678.  ^^'^^  is  payd  at  London,  his  majesty  will  not  account  those 
— '^^  to  be  friends  to  his  Crowne,  that  shall  seek  to  interrupt  us 
therein  and  for  the  impress  put  vpon  it,  wee  shall  take  it 
as  his  majesty's  signall  ouning  of  vs,  if  he  will  please  to 
order  such  an  impresse  as  shall  be  to  him  most  accep- 
table." 

1680.  For  several  years  a  plan  had  been  on  foot  in  the  Colony, 
31  a  V 

ig^    to  have  a  free  mint,  or  have  bullion  coined  at  it  without 

any  charge  to  its  owner.  ^  Reasons  assigned  by  a  writer  for 
a  change  of  this  kind  were,  that  it  would  remove  general 
complaint,  lessen  the  languishment  of  trade,  and  increase 
the  amount  of  specie.  Among  his  remarks  were  these, 
that  foreign  coins  came  from  the  mint  6J  per  cent,  less  in 
value  than  they  entered ;  that  the  stamp  on  our  money 
added  nothing  to  its  real  worth — ''  a  Spanish  Cross  in  all 
other  places  being  as  well  esteemed  as  a  New  England 
Pine ;"  that  little  coin  was  now  made  here  compared  with 
what  used  to  be,  and  that  of  this  little  a  considerable 
portion  circulated  in  the  other  colonies. 

1681.  Having  in  view  that,  among  the  misdemeanors  charged 
I  upon  them  at  St.  James,  was  the  oft  repeated  one  of  mak- 
ing money,  our  Legislature  give  their  agents,  bound  to 
London,  the  subsequent  instructions: — ^"  You  shall  be 
humble  suiters  to  his  majesty  for  the  obteyning  his  Royall 
grant  freely  to  remit  all  bypast  errors  and  deviations  from 
the  rules  of  our  Charter.  And  you  shall  also  tender  an 
annuall  recognition  by  vs  to  be  made,  as  the  acknowledg- 
ment of  our  allegiance  and  humble  thankfullness  to  his 
majesty  for  his  gracious  clemency  towards  vs,  to  be  payd 
in  twenty  or  thirty  Beaver  skinns  annually,  or  in  any 
other  thing  of  the  groweth  of  this  Colony  as  his  majesty 
shall  please  to  make  choyce  on  demand  at  Boston." 

1682.  Finding  that  the  measures  recently  adopted  to  stop  our 
^^^'   specie  from  being  exported,  and  to  increase  it  among  the 

people,  did  not  succeed,  the  General  Court  raise  the  nom- 
inal value  of  a  Pillar,  Mexico  or  Sevil  piece-of-eight  from 
6'  to  6'  8'^,  if  weighing  an  ounce  of  silver,  Troy  weight, 
and  its  parts  in  the  like  proportion. 

I  Mass.  Archives — Pecuniary,  vol.  i.       *Mass.  Archives — Political  vol. 


MASSACHUSETTS  CURRENCY. 


45 


As  a  compensation  to  the  Treasurer  of  the  Colony  for  i(;84. 
his  constant  liability  to  damage  in  receiving  public  claims  "jT"^' 
on  the  inhabitants  in  grain,  he  is  allowed  1'  on  £1,  "he      i. 
standing  to  the  loss  of  measure  and  charge  of  warehouse    • 
room." 

A  report  is  made  by  officers^  of  the  London  Mint  to  the  1C85. 
Commissioners  of  the  Royal  Exchequer,  relative  to  the  ''^"• 
money  of  Massachusetts.  They  state  that  it  Avas  22  J  per 
cent,  lighter  than  that  of  England,  and  that  thereby  much 
of  their  own  coin  was  brought  hither.  They  desire,  that 
if  the  King  continue  the  Boston  mint,  he  would  order  its 
emissions  to  be  of  equal  value  with  his  own  specie. 
They  further  remark  concerning  our Legislatm-e,  "though 
they  have  continued  this  unwarrantable  way  of  coyning 
monys  ever  since  y''  year  1652,  yet  there  is  no  alteration 
of  date  appears  upon  the  coyne,  but  the  same  date,  viz. 
1652,  as  at  the  first  coyning  of  them."  With  their  con- 
duct thus  watched  and  criticised  in  London,  our  ancestors 
were  soon  to  experience  the  feared,  but  deprecated  suspen- 
sion of  their  Charter  privileges. 

This  event  they  soon  realize.     Though  the  long  estab-  1686. 
lished  form  of  our  Colonial  Government  had  departed,  and   ^^^y 
its   remains    had   come    into   hands   of    greater   reputed 
royalty,  to  be   modified  and   administered   according   to 
their  instructions  from  the  Crown,  still  the  doors  of  our 
coining  establishment  were  not  yet  closed.     ~  This  institu-   j„]„ 
tion  became  the  occasion  of  another  report  from  the  Earl     15. 
of  Rochester,  Lord  High  Treasurer  of  England.     Such  a 
document  advanced,  as  reasons  why  the  mint  here  should 
be  abolished,  that  a  similar  establishment  had  been  refused 
to  Ireland,  even  after  being  allowed  to  Sir  Thomas  Vyner 
and  others  in  1662,  and  another  to  Jamaica  in  1679,  applied 
for  by  the  Governor  of  that  Island,  the  Earl  of  Carlisle, 
and  that  they  tended  to  injm-e   the   standard  of  coins, 
adopted  by  Parliament.     The  Committee  added, — "As  for 
the  second  part  of  Mr.  Guy's  letter,  which  directs  us  to 
think  upon  some  other  inscription  more  agreable  to  the 

'  Thomas    Neale,   Charles    Dun-  ^  Massachusetts    Archives — Pecu- 

combe  and  James  Hoare.  niary,  vol.  i. 


4g  HISTORICAL  ACCOUNT  OF 

1686.  King's  prerogative,  to  be  stampt  upon  the  coyne  of  New 
'^'  England,  if  a  mint  be  settled  there,  wee  craue  some  time 
to  consider  of  it." 

While  the  mint  here  was  endangered  by  such  repeated 
attacks,  measures  were  revived  for  the  promotion  of  a 
Bank.     The  following  action  was  had  on  this  subject  by 

Sept.  President  Dudley  and  his  Council,  ^ "  Upon  the  considera- 
^^'  tion  of  the  great  decay  of  trade,  obstructions  to  manufac- 
tures and  commerce  in  this  Country,  and  multiplicity  of 
debts  and  suits  thereupon,  principally  occasioned  by  the 
present  scarceity  of  coyne.  And  for  that  it  is  not  visible 
how  the  same  may  be  remedied,  unless  some  other  secure 
medium  be  approved  than  the  species  of  silver,  which  very 
injuriously  hath  been  transported  into  other  parts  hence. 
And  for  as  much  as  it  hath  been  suggested  and  made 
appeare  to  us,  that  the  defects  aforesayd  may  be  supplyed 
with  Bank  Bills,  or  credit  given  by  persons  of  estate  and 
known  integrity  and  rejDutation,  which  may  passe  with 
greater  ease  and  security  in  all  payments  of  twenty  shil- 
lings or  above,  than  monies  coyned.  And  that  other 
countryes  haue  found  their  Banks  useful  to  their  great 
flourishing  in  trade  and  wealth.  And  Bank  credit  or  Bills 
are  of  greater  value  than  ready  money  there.  Also,  that 
his  Majestie's  revenues  in  this  Country  cannot  be  so  well 
answered  by  the  present  species  of  silver,  without  a  great 
streightening,  impayring,  and  damage  to  the  merchandizing 
trade  and  dealings  of  his  Majestie's  good  subjects  in  these 
his  territories  and  dominions.  And  having  perused  and 
considered  a  proposall,  made  to  us  by  John  Blackwell  of 
Boston,  Esq"",  on  behalf  of  himself  and  divers  others,  his 
participants,  as  well  in  England  as  in  this  Countrey," 
liberty  is  granted  for  the  Directors,  or  "  Conservatives"  of 
the  Bank,  to  commence  the  issuing  of  bills,  on  security  of 
real  and  personal  estate,  and  imperishable  merchandize. 

This,  like  other  kindred  institutions,  was  hailed  as  the 
object  of  fresh  and  cheering  hope.  It  was  undoubtedly 
regarded  by  its  advocates  as  promising  them  much  more 
of  a  golden  harvest  than  they  realized.     As  the  project  of 

'  Mass.  Archives — Usurpation,  vol.  i. 


MASSACHUSETTS  CURRENCY.  4-7 

enterprizing  merchants  in  both  hemispheres,  it  must  have  ^^op 
been  viewed  as  a  new  bond  of  union  between  the  Colony  s-^v-i^ 
and  its  mother  kingdom.  Experience,  however,  probably 
taught  them  that  banking  was  not  so  much  a  sm*er  road 
to  wealth  than  minting,  as  their  sanguine  expectations 
predicted.  The  history  of  that  age,  and  of  every  other,  as 
to  commercial  countries,  has  proved  that  no  plans  for  en- 
larging the  currency  of  a  Commonwealth  can  really  flourish, 
miless  based  on  the  earnings  of  its  honest  and  industrious 
population.  How  long  or  how  far  the  preceding  Corpora- 
tion continued  their  operations,  we  are  unable  to  tell  ; 
because  the  records  of  the  Presidential  government  of  New 
England,  while  having  entire  copies  annually  forwarded 
to  London,  were  left  here  only  in  loose  and  comparatively 
small  fragments.  This  much,  however,  is  certain,  that  if 
it  existed,  as  it  very  probably  did,  till  the  Revolution  of 
1689,  it  did  not  survive  any  longer.  As  almost  an  entire 
stranger  among  the  computed  institutions  of  currency  in 
our  country,  we  quote  the  ensuing  paragraph  in  relation 
to  it,  from  a  rare  tract  published  in  1714.  ^ "  About 
twenty  eight  years  ago,  our  fathers  entered  into  a  partner- 
ship to  circulate  their  notes,  founded  on  land  security, 
stamped  on  a  paper,  as  our  Province  bills,  which  gave  no 
oflTence  to  the  Government  then  and  at  that  time,  when 
the  prerogative  of  the  Crown  was  extended  further  than 
ever  has  been  since." 

The  Bank,  to  which  this  refers,  had  much  resem- 
blance, in  its  regulations,  to  one  formed  in  London,^  1683, 
which  did  not  keep  long  in  operation. 

Though  the  administration  of  Sir  Edmund  Andros  was 
deemed  very  oppressive  by  the  most  of  our  Provincials, 
and  though  its  expenses  called  for  larger  fees  and  greater 
taxes,  yet  it  did  not  refuse  to  accommodate  many  of  the 
people,  in  receiving  from  them  country  pay  for  their  rates. 
^It  carried  the  spirit  of  accommodation  so  far,  as  to  permit  i687. 
the  public  demand  on  Hingham  to  be  paid  in  milk  pails. 
Its  coffers  were  kept  open  for  the  treasures  of  the  field, 

'  Boston  AlheiifEum  Tracts,  C  121.  ^  Massachusetts   Archives — Usur- 

*  Boston  AlhencEum  Tracts,  B  654.       pation,  vol.  i. 


48 


HISTORICAL  ACCOUNT  OF 


iggg  as  well  as  of  the  mine.  One  report  of  the  Treasury  states 
its  funds  thus  : — 

Corn  remaining  unsold,     ...     £  938  11/1. 
Money, 1,340  10/3. 

1687  A  considerable  means  of  enlarging  the  specie  circulation, 
^"*^  was  the  arrival  of  several  vessels^  fitted  out  in  Boston  and 
'  elsewhere,  with  Indian  divers,  from  some  Spanish  wrecks 
on  the  north  side  of  Hispaniola.  Such  vessels  brought 
from  these  sunken  argosies,  treasures  of  various  sorts  and 
amounts.  It  was  from  the  same  source,  that  Sir  William 
Phips  derived  his  title  and  his  fortune. 

Still,  a  supply  of  this  kind  was  nothing  near  equal  to 
the  increased  charges  to  Avhich  many  persons  were  sub? ' 
jected,  in  defending  their  lands  from  being  sequestered, 
because  they  delayed  to  pay  largely  for  new  deeds  of  them, 

1688.  or  in  meeting  the  claims  of  quit  rent  on  them.  ^The 
inhabitants  of  Cambridge  having  been  engaged  in  contro- 
versy with  Edw*^  Randolph,  who  tried  to  get  a  large  piece 
of  their  territory,  thus  express  themselves  in  a  petition  to 
the  throne  : — "  Royal  Sir,  we  have  no  way  to  procure 
money  to  defend  our  cause  in  the  law — therefore  unto  our 
Royal  master,  as  the  public  father  of  all  your  subjects, 
do  we  make  this  our  humble  address  for  relief." 

^  With  the  recovery  of  their  freedom,  by  the  overthrow 
of  the  Usurpation,  our  ancestors  renewed  their  exertions  to 
sustain  the  Boston  mint.  ^  They  sent  a  petition  to  William 
and  Mary,  for  permission  to  coin  money,  as  they  had  done. 
But  this  request  does  not  appear  to  have  had  a  favorable 
reading,  and  of  course  the  coining  establishment,  which 
seems  to  have  been  suspended  under  the  late  administra- 
tion, must  soon  have  received  its  final  quietus.  Thus  fell 
an  institution,  around  which  the  hopes  and  fears  of  our 
fathers  long  clustered,  and  against  which  expressions  of 
regal    dissatisfaction   had   been   often    uttered.      Formed 

>  Hutchinson.     Narrative  of  New  ^  INlass.  Archives — Inter- Charter, 

England  Miseries.  vol.  i. 

*  Mass.  Province  Records. 


MASSACHUSETTS  CURRENCY.  49 

when  the  poHtical  foundations  of  England  were  broken  Kjgo. 
up,    and   a  di-ead   uncertainty  obscured   her  prospect,   it  ^^^^^^ 
closed  when  the  storm  of  another  revohition  had  recently 
swept  through  her  domain,  and  was  scarcely  hushed. 

However  the  mint  was  thus  absolutely  terminated,  yet 
the  products  of  its  operation  were  long  current  in  our 
comitry.  Down  to  the  Revolution  of  our  Independence, 
they  were  often  seen,  and  passed  readily  in  business  trans- 
actions, with  other  coin.^ 

Disappointed  as  to  the  renewal  of  their  mint,  and  borne 
down  to  the  very  dust  by  the  burden  of  debt,^  incurred  by 
the  faihu'e  of  an  expedition  against  Canada,  the  General 
Court  saw  no  other  choice  than  to  form  a  Provincial 
Banlc,  and  issue  paper  money.  Let  their  own  words  tell 
the  cause  for  such  a  measure.  ^ "  Whereas  for  the  main-  Dec. 
taining  and  defending  of  their  Majesties  interest  against 
the  hostile  invasions  of  their  French  and  Indian  enemies, 
who  have  begun  and  are  combined  in  the  prosecution  of 
a  bloody  war  upon  the  English  of  their  Majesties  Colon^'-s 
and  Plantations  of  New  England,  this  Colony  hath  neces- 
sarily contracted  sundry  considerable  debts,  which  this 
Court  taking  into  consideration,  and  being  desirous  to 
approve  themselves  just  and  honest  in  the  discharge  of 
the  same,  and  that  every  person  who  hath  credit  with  the 
country  for  the  use  of  his  estate,  disbursements  or  service 
done  for  the  public,  may  in  convenient  time  receive  due 
and  equal  satisfaction ;  withal  considering  the  present  pov- 
erty and  calamities  of  the  country,  and,  through  scarcity 
of  money,  the  Avant  of  an  adequate  measure  of  commerce, 
whereby  they  are  disadvantaged  in  making  present  pay- 

'  Thomas  Hutchinson,  afterwards  '  Gov.  Win.  Shirley,  in  his  speech 

Governor,  wrote  to  one  of  his  cor-  of  1746,  states  that  the  expedition 

respondents    in    England,    Feb.   23,  against  Canada,  in   ItiilO,  "  cost  the 

17(il,  "  I  will   give    Dr.  Wliitworth  single    Province    of    Massachusetts 

a  N.  E.  shilling  and  sixpence,  which  about  £50,000,  with  the  loss  of  an 

1   desire    you  to    present,   with   my  abundance  of  their  young  men  by  a 

compliments  to    Mr.  Jackson.      As  malignant  fever,  that  raged  in   the 

there  never  will  be  any  more  coined,  camp,  and   several    distempers   that 

and  no  other  Colony  ever  had   any  happened    in  their  way  home,   and 

coin,   perliaps   they  will   be    looked  gave  this  I^rovmce  so  deep  a  wound,    , 

upon  as  something  of  a  curiosity."  that  it  did  not  recover  itself  in  many 

Mr.  Hutchinson  does  not  agree  with  years  after." 

Chalmers,    who    informs    us,    that  -*  Mass.  Province  Records. 
Maryland  had  a  mint  in  1662. 

7 


50  HISTORICAL  ACCOUNT  OF 

1690.  nient,  as  desired,  yet  being  willing  to  settle  and  adjust  the 

"""""^  accounts  of  said  debts,  and  to  make  payment  thereof,  with 

what  speed  they  can,"  a  committee  are  empowered  to 

make  an  immediate  issue  of  £7,000,  in  bills  from  5*  to  £5. 

The  form  of  such  notes  was  as  follows  : — 

No.  ("2161.;  10' 

This  indented  Bill  of  Ten  shillings  due  from  the  Mas- 
sachusetts  Colony  to  the  Possesso?^,  shall  be  in  value  equal  to 
money,  and  shall  he  accordingly  accepted  by  the  Treasurer 
and  Receivers  subordinate  to  him,  in  all  public  payments, 
and  for  any  stock  at  any  time  in  the  Treasury.  Boston 
in  New  England,  Dec.  10,  1690.  By  order  of  General 
Court. 
***##***  Penn  Townsend,  ") 

*  L.  S.  I  Adam  Winthrop,  S-  Committee. 

********  Tim.  Thornton,    j 

Thus  commenced  a  method  of  furnishing  a  paper  cur- 
rency, regulated  by  the  government,  and  conducted  by  its 
officers,  which  continued  till  1750,  excepting  some,  in 
bills  of  small  denominations,  for  change,  emitted  soon  after 
that  year.  Notwithstanding  all  the  safeguards  which  an 
honest  and  anxious  government  threw  around  such  a  price 
of  their  defeat  in  Canada,  they  were  mortified  and  alarmed 
to  perceive,  that  it  failed  to  have  a  strong  hold  on  popular 
confidence.  ^  To  aid  in  the  prevention  of  a  panic,  relative 
to  monied  concerns,  and  ever  injurious  to  community, 
Sir  Wm.  Phips  came  forward  and  exchanged,  at  par  value, 
a  large  amount  of  his  coin  for  the  Province  paper.  Still 
he  found  the  common  fear  stronger  than  his  persuasion 
and  example — greater  than  the  funds  of  his  wealth.  The 
result  proved  most  oppressive,  where  it  always  does  in 
similar  exigencies.  -The  soldiers,  who  smvived  the 
perils  and  pains  of  the  expedition,  the  widows  and  orphans 
of  their  companions,  who  perished  in  the  disastrous  enter- 
prise— were  compelled,  by  want,  to  receive  their  dues  in 
public  bills,  and  to  part  with  them  at  a  discount  of  at 

1  Hutchinson.  2  Boston  Athenaeum  Tracts.  C  55,  C  C2. 


MASSACHUSETTS  CURRENCY.   '  5J 

least  one  third.    This  opened  a  new  source  for  speculation,  i690. 
with  tiie  usual  pleas  and  objections  for  its  being  practised.       '^^ 

^It  is  ordered  that  the  bills  out  and  to  be  emitted,  shall  kjcj^^ 
not  exceed  £40,000,  "  which  is  supposed  will  amount  to    May 
the  full  of  what  the  country  is  indebted,  and  will  probably 
be  called  in  again  by  the  rates  already  granted."     Here 
was  a  hopeful  anticipation,  which  was  not  happily  realized, 
because  the  protraction  of  the  war  prevented. 

In  order,  however,  to  commence  the  accomplishment  of  Oct. 
their  purpose.  General  Court  require  that  £10,119  9'  in  '^^' 
bills,  collected  by  the  Treasurer,  be  consumed  by  a  com- 
mittee. Thus  began  a  burning  process,  which  was  re- 
peated over  a  half  century.  Curiosity  has  preserved  no 
residuum  of  the  bills,  as  the  Repository  of  the  Royal 
Artillery  at  Woolwich  has  of  the  Bank  of  Eiigland  notes, 
in  a  case  of  glass,  for  the  examination  of  visitors, 

^  A  writer  of  this  period,  in  describing  the  unwillingness 
of  many  to  take  the  paper  currency,  asks,  "  Is  the  security 
of  one  Plantation  magistrate  [in  the  West  Indies]  better 
than  that  of  all  the  Massachusetts  Representatives  ?  "  He 
adds,  that  the  French  in  Canada  had  more  faith  in  the 
promise  of  their  government,  for  they  readily  took  the 
notes  issued  from  their  treasury. 

2  To  rectify  the  diminution  of  our  paper,  the  ensuing 
order  is  passed.  "  Whereas  theire  Majesties  affaires  within  1 692. 
this  Province  do  require  a  speedy  advance  for  y*^  defence  "'"^ 
of  y^  Province  and  y*^  prosecution  of  y®  war  against  theire 
French  and  Indian  enemies,  and  there  being  no  stock  at 
present  in  y'^  Treasmy  to  supply  y^  same,  or  to  defray 
other  y^  necessary  charges  for  support  of  y*^  government, 
be  it  therefore  enacted  that  all  Bills  of  publick  creditt 
issued  forth  by  order  of  y*"  Generall  Court  of  y^  late  Col- 
lony  of  y®  Massachusetts  Bay,  shall  pass  current  within 
this  Province  in  all  payments  equivalent  to  money,  and  in 
all  public  payments  at  5  per  cent,  advance.  And  for 
encouragement  to  such  persons  as  are  possessors  of  said 
Bills,  to  lend  them  for  y*"  service  of  y'^  publick,  it  is  further 

>  Mass.  Province  Records.  ''  Massachusetts   Archives — Pecu- 

*  Boston  AthenaBuin  Tracts,  C  55,       niary,  vol.  i. 


52 


HISTORICAL   ACCOUNT  OF 


1692.  enacted  that  they  shall  be  secured  by  y®  publick  Taxes 
""^^^  and  other  Revenues,  and  shall  be  reimburst  in  money 
within  twelve  moneths." 

This  remedy  for  restoring  the  paper  to  a  par  with  specie, 
had  its  intended  efficacy  for  about  twenty  years.  ^  The 
bonus  of  five  per  cent,  was  allowed  as  often  as  the  bills 
were  brought  to  the  exchequer,  though  several  times  in  a 
year,  which  frequently  occurred,  because  they  were  re- 
peatedly issued. 

This,  which  was  more  than  six  per  cent,  a  year,  vir- 
tually contradicts  the  ensuing  representation  of  Smith,  in 
his  Wealth  of  Nations, — certainly  in  part,  as  to  Massachu- 
setts. "  The  paper  currencies  of  North  America  consisted 
not  in  bank  notes  payable  to  the  bearer  on  demand,  but  in  a 
government  paper,  of  which  the  payment  was  not  exigible 
till  several  years  after  it  was  issued.  And  though  the 
Colony  government  paid  no  interest  to  the  holders  of  this 
paper,  t^iey  declared  it  to  be,  and  in  fact  rendered  it,  a 
legal  tender  of  payment  for  the  full  value  for  which  it  was 
issued.  But  allowing  the  Colony  security  to  be  perfectly 
good,  £100  payable  in  fifteen  years  hence,  for  example, 
in  a  country  where  interest  is  at  six  per  cent.,  is  worth 
little  more  than  £40  ready  money.  To  oblige  a  creditor, 
therefore,  to  accept  of  this  money  as  full  payment  for  a 
debt  of  £100,  actually  paid  down  in  ready  money,  was  an 
act  of  such  violent  injustice,  as  has  scarce,  perhaps,  been 
attempted  by  the  governments  of  any  other  country,  which 
pretended  to  be  free."  Such  language  evidently  shows, 
that  Mr.  Smith  looked  only  at  the  worst  features  of  our 
Provincial  paper  currency,  and  not  at  its  best.  Besides, 
a  considerable  portion  of  the  Province  bills  were  redeemed 
sooner  than  he  appears  to  have  supposed. 

With  regard  to  the  loan  of  the  bills  to  government, 
which  a  considerable  number  of  merchants  in  Boston 
made,  it  did  not  operate  so  punctually,  as  was  anticipated. 
In  the  petitions  of  the  latter,  they  regret,  that  though  the 
time  had  expired  several  months,  yet  the  treasury  had  no 
coin  to  satisfy  their  claims. 

'  Boston  Gazette,  Aug.  20  to  27, 1739. 


MASSACHUSETTS  CURRENCY. 


53 


Among  the  various  evils,  aside  from  those  of  witchcraft,  ^qq^. 
which  attracted  public  attention,  was  the  counterfeiting  of  — ■ — 
tlie  hard  money.     ^  The  Legislatiu'c  felt  themselves  called    Nov. 
to  deal  with  this  crime  more  severely  than  before.    Besides      ■** 
other  judicial   intlictions,   those  convicted  of  it  were   to 
stand  in  the  pillory  and  each  have  an  ear  cropped.     Still, 
though  this  and  other  severer  measures  were  adopted,  the 
organ  of  acquisitiveness,   if  we  may  use  a  phrenological 
phrase,  had  developed  itself  so  inordinately  in  some,  they 
braved  the  terrors  of  justice  and  aimed  to  debase  the  cur- 
rency for  their  own  gain. 

While  thus  guarding  the  medium  of  exchange  by  penal 
enactments,  our  civil  fathers  strove  to  improve  it  in  other 
respects.  They  say — -"  Forasmuch  as  the  abatement  of  j  693. 
Interest  hath  always  been  found  beneficial  to  y^  advance-  ^""^ 
ment  of  Trade  and  improvement  of  lands  by  good  hus- 
bandry,"— and  they  order  that  the  long  standing  eight  per 
cent,  ^interest  be  reduced  to  six. 

Of  the  frequent  difficulties,  which  attended  the  transpor- 
tation of  country  pay  for  taxes,  we  select  the  following  :  '^ — 
A  constable  of  Springfield,  employed  to  collect  the  Prov- 
ince rates,  received  130  bushels  of  peas.  As  the  water 
carriage  was  most  preferable,  he  had  to  make  seven  or 
eight  jom'neys  to  Hartford  and  two  to  Boston,  before  he 
could  get  his  heavy  remittance  for  the  colonial  Treasurer, 
taken  on  freight.  But  however  such  toil  was  at  an  end, 
his  chief  anxiety  begins.  His  adventure  in  descending 
the  Falls  of  Comiecticut  River  met  with  a  sad  mishap 
and  was  rendered  unsaleable  by  being  wet  with  the  water. 

His  townsmen  laid  his  case  before  General  Court,  desirins,    ^ 

'  °'   June 

that  as  he  was  in  the  way  of  his  duty  for  the  public,  he     14. 

might  not  bear  the  loss.     They  lent  a  favorable  ear  to  the 

petition. 

Such  a  mode  of  gathering  the  public  rates,  being  found 

thus   inconvenient,   and  paper  money  serving    the  same 

purpose  with  much  greater  facility  and  economy,  it  appears 

'  Massacliusetts  Province  Records.  us  tliat  the  law  of  Enjrland  reduced 

*  Massachusetts    Archives — Pecu-  the  interest  there  in  1G:2;},  from  ten  to 

niary,  vol.  i.  eight,  and  in  IGGO  from  eight  to  six. 

^  Essay  on  the  governing  causes  of  ■*  Massachusetts  Archives — Pecu- 

the  Natural  Rate  of  Interest, informs  niary,  vol.  i. 


54  HISTORICAL  ACCOUNT  OF 

1693.  to  have   been  last  practised  in  1694,  with  the  exception  of 
^""""^  partial  restorations,  wliich  will  meet  our  notice  in  order 

of  date.  Thus  was  grain,  as  a  currency,  shut  out  from  its 
principal  com-se  of  circulation.  Still,  the  custom  was 
clothed,  in  the  view  of  the  aged,  with  the  veneration  and 
attachment  of  antiquity.  Having  associated  itself  with 
their  youth,  business  and  predilections,  as  well  as  with 
those  of  their  fathers,  they  could  not  suffer  it  to  depart 
without  wishful  looks  and  heartfelt  adieus. 

^  With  a  partial  reference  to  the  custom  so  terminated, 
we  adduce  an  extract  from  a  female  traveller: — "They 
give  the  title  of  merchant  to  every  trader,  who  rates  his 
goods  according  to  the  time  and  specie,  they  pay  in ;  viz. 
pay,  money,  pay  as  money  and  trusting.  Pay  is  grain, 
pork  and  beef,  &c.,  at  the  prices  set  by  the  General  Court. 
Money  is  pieces-of-eight,  ryals,  Boston  or  Bay  shillings, 
or  good  hard  money,  as  sometimes  silver  coin  is  called ; 
also,  wampum,  viz.  Indian  beads  which  serves  as  change. 
Pay  as  money,  is  provision  aforesaid,  one  third  cheaper 
than  the  Assembly  set  it,  and  trust,  as  they  agree  for  the 
time.  When  the  buyer  comes  to  ask  for  a  commodity, 
sometimes  before  the  merchant  answers  that  he  has  it,  he 
says,  '  is  your  pay  ready  ?'  Perhaps  the  chap  replies,  '  yes.' 
'  What  do  you  pay  in,'  says  the  merchant.  The  buyer 
having  answered,  then  the  price  is  set ;  as  suppose  he 
wants  a  6*^  knife,  in  pay  it  is  12"^ ;  in  pay  as  money,  8**, 
and  hard  money,  its  own  value,  6*^.  It  seems  a  very 
intricate  way  of  trade,  and  what  Lex  Mercatoria  had  not 
thought  of." 

1694.  The  favorite  coin  of  our  ancestors — the  pine  tree  money 
21^'  — was  still  so  plenty,  ^that  £675  of  it  had  been  recently 

ordered  for  remission  to  Sir  Henry  Ashurst  in  London. 
1697.  Though  the  doors  of  our  mint  were  closed  by  the  hand 
j,j  *  of  Royalty,  its  coins  continued,  like  other  specie,  subject 
to  legislation.  It  is  enacted,  ^  that  they  pass  at  the  value 
of  their  face,  if  not  "  diminished  by  washing,  clipping, 
rounding,  filing  or  sealing."     Among  the  accompaniments 

>  Lambert's  Colony  of  New  Haven.  ^Massachusetts    Archives — Pecu- 

Travels  of  Madam  Kniglit.  niary,  vol.  ii. 

-Mass.  Provincial  Records. 


MASSACHUSETTS  CURRENCY. 


55 


to  this  money — ever  welcome  to  the  sight  of  true  New  1(597, 
England  men,  as  one   symbol  of  their  by-gone  struggle  — • — - 
with  Crown  prerogative — Sevil,  Pillar  or  Mexico  pieces 
are   to  pass  at  G*   each,   their  halves  pro  rata,  but  their 
quarters  at  IG'^,  and  the  eighths,  called  reals,  at  S''. 

So  engaged  in  fixing  the  standard  of  their  specie,  the 
Court  h-enew  their  care  to  bar  its  exportation.  While  Dgp, 
there  was  this  tendency  in  hard  money  to  go  abroad,  as  ''^2. 
the  stream  to  find  its  level,  it  was  considerably  increased 
by  means  which  held  no  sympathy  with  honest  gain. 
^  Bucaneers,  who  had  nefariously  pushed  their  fortunes  in 
various  seas,  secretly  brought  liberal  portions  of  their 
ill-gotten  wealth  to  our  shores.  Among  them  were  Bradish 
and  Kidd,^  imprisoned  in  our  metropolis  and  thence  trans- 
ported to  London,  where  they  paid  the  forfeit  of  their 
crime  on  the  gallows. 

At  this  date,  there  was  a  scarcity  of  change.  Such  1701. 
an  occasion  was  followed  with  its  usual  consequences.  V' 
^  Regardless  of  their  irregular  example  and  bent  on  their 
own  convenience  and  gain,  not  a  few  individuals  stamped 
pieces  of  brass  and  tin,  and  palmed  them  on  commu- 
nity at  a  penny  each.  They  were  speedily  commanded 
by  the  Legislature  to  withdraw  from  their  course  or  be 
fined  and  imprisoned. 

To  meet  the  common  want,  as  just  indicated,  a  com-  March 
mittee  of  General  Court  report  in  favor  of  having  Province  . 
pence  made  of  copper.  They  also  propose  a  bank,  to  be 
owned  by  responsible  men,  and  solely  confined  to  them. 
But  both  of  these  recommendations  were  negatived  by  the 
Council.  However  thus  arrested,  they  serve  as  a  gauge 
of  prevalent  views,  then  existing,  on  pecuniary  matters. 
Undoubtedly,  the  similar  institution,  formed  here  in  1686, 
and  also  the  still  flourishing  one  of  London,  commenced 
in  1694,  and  the  like  wants  of  trade  at  this  date  as  well 
as  in  those,  produced  such  movements. 

1  Massachusetts  Archives — Pecu-  and  retained  for  a  time.     The  ballad, 

niary,  vol.  ii.  commemorative   of  his   career    and 

-Hutchinson.     Annals  of  Salem.  end,  is  familiar  to  the  childhood  of 

•*  While  Kidd  was  in  confinement,  many  yet  living, 
his  wife,  coming  to  console  him,  had  '  Massachusetts  Archives — Pecu- 

her  plate  and  other  property  seized  niary,  vol,  ii. 


^Q  HISTORICAL  ACCOUNT  OF 

1701.  In  accordance  with  the  suggestion  of  the  Committee 
^^^  last  named,  it  is  ordered  that  pistoles  of  4  dwts.  8  grs.  pass 

8.     in  all  payments  for  26%  and  foreign  gold  of  2  dwts.  and 
4  grs.  and  not  inferior  to  pistoles,  for  13'  each. 

^  Following  the  example  of  our  Province,  Barbadoes  issues 
bills  of  credit  on  the  fund  of  3/9  tax  for  every  slave,  and 
Carolina  also,  on  the  rates  paid  for  liquors,  skins  and  furs. 

1702.  ^The   last   parcel    of   Government   bills,  or    Treasury 
^^}'  notes,  as  they  may  be  properly  called,  which  had  been 

emitted,  as  previously  specified,  were  reissued  in  1702,  and 
amounted  to  £3,000.  These,  with  others  still  out,  were  the 
only  paper  currency  passing  in  all  New  England.  How 
often  or  how  much  of  it  was  emitted  from  the  Treasury  up 
to  this  time,  was  not  particularly  recorded  among  the  trans- 
actions of  the  General  Court.  But  no  doubt  the  amount 
of  it  for  such  a  period,  as  repeatedly  issued  and  printed, 
must  have  been  large,  for  the  computation  of  that  day. 

^  In  reviewing  the  history  of  their  paper  currency,  the 
House  of  Representatives  inform  us,  that  the  taxes  as- 
sessed from  1692  to  1702,  inclusive,  were  nearly  £11,000, 
one  year  with  another.  As  it  was  customary  for  the 
Treasurer  to  pay  the  public  debts  with  bills,  before  the 
taxes  were  collected,  it  is  very  probable,  that  the  emis- 
sions and  re-emissions  of  such  money  exceeded  £110,000. 
^Having  been  put  in  circulation  before  the  arrival  of  the 
second  Charter  of  William  and  Mary,  they  were  denomi- 
nated Old  Charter  Bills. 
Nov.  ^The  public  being  strongly  desirous  for  more  paper 
'  currency,  the  Legislature  vote  to  issue  £10,000.  The 
cause  for  such  a  step  is  thus  given.  "  Forasmuch  as  by 
reason  of  the  extream  scarcity  of  money,  and  the  want 
of  other  medium  of  commerce,  the  trade  of  this  Province 
is  greatly  obstructed,  and  the  aflairs  of  the  Government 
very  much  hindered,  the  payment  of  the  publick  debts 
and  taxes  retarded,  and  in  great  measure  rendered  imprac- 
ticable, to  the   discouragement   of  souldiers    and  seamen 

'  Discourse       on       Currencies. —  '•  Discourse  on  Currencies.     Let- 

Holmes's  Annals.  ters  from  Boston  in  1744. 

^Mass.  Provincial  Records.  *  Acts  of  Massachusetts. 
3  Mass.  Prov.  Rec.  Dec.  18,  1739. 


MASSACHUSETTS  CURRENCY. 


67 


necessarily  imployed  on  her  Majesty's  service  in  the  de-1702. 
fence  of  her  Majesty's  subjects  and  interest  within  the 
Province  in  this  time  of  war."  The  bills  were  to  run 
from  2'.  to  £5,  and  to  have  interest  paid  on  them  of  five 
per  cent,  a  year.  It  is  "  enacted  that  the  duties  of  Impost 
and  Excise,  granted  by  this  Court  shall  be  a  Fund  and 
secm-ity  for  the  repayment  and  drawing  in  of  the  said  Bills 
to  the  Treasury  again,  so  far  as  that  will  reach.  And  as 
a  further  Fund  and  secm-ity  for  the  same,  and  for  defrey- 
ing  of  the  further  necessary  growing  charge  of  the  Prov- 
ince, there  is  granted  to  her  itiost  excellent  Majesty  a  tax 
of  £6,000,  to  be  levied  on  Polls  and  Estates  both  real  and 
personal." 

^  As  there  are  a  few  verbal  variations  in  the  phraseology 
of  the  bills  of  this  emission,  from  those  of  the  former,  we 
give  an  example  of  one,  that  a  comparison  may  be  made. 
It  will  be  perceived  that  this  latter  order  of  Bills  is  ex- 
pressed to  agree  with  the  Provincial  administration,  while 
the  former  tallied  with  that  of  the  Colonial. 

No.  (     ).  20^\ 

This  indented  Bill  of  Tioenty  shillings,  due  front  the 
Province  of  Massachusetts  Bay  in  New  England,  to  the 
possessor  thereof,  shall  he  in  value  equal  to  money,  and 
shall  he  accordingly  accepted  by  the  Treasurer  and  Re- 
ceivers subordinate  to  him,  in  all  puhlick  payments,  and 
for  any  stock  at  any  time  in  the  Treasury. 

Boston,  November  the  Twenty-first,  anno  1702. 
By  order  of  the  Great  and  General  Court  or  Assembly. 

J.    R.    \ 

E.  H.    >  Committee. 
N.  B.    > 

The  means  thus  provided  to  redeem  the  £10,000  in 
bills,  were  to  be  paid  in  a  year,  and  all  the  preceding  bills, 
now  out,  when  drawn  into  the  treasury,  were  to  be  no 
more  circulated.  This  was  a  wise  precaution,  and  had  it 
been  subsequently  practised,  it  would  have  proved  a  safe- 
guard to  comnumity. 

'  Mass.  Archives — Pecuniary,  vol.  ii. 

8 


CO  HISTORICAL  ACCOUNT  OF 

1703.  ^  Still  intent  on  meeting  the  public  exigence  for  small 

^rP^  chano-e,   another   proposition   is  laid  before   the   General 
March  °   '  ^  m         ■ 

26.    Court,  that  William  Chalkhill,  who  had  been  an  otticer  m 

her  Majesty's  mint,  but  then  resident  at  Boston,  be  con- 
tracted with  to  import  from  England  £5,000  worth  of 
copper  pence.  This  appears  to  have  been  accomplished. 
June  2  In  reference  to  the  different  estimates  placed  by  the 
American  colonies  on  the  same  coins,  we  make  the  suc- 
ceeding extract.  Col.  Robert  Q^uarry  writes  from  New  York 
to  the  Lords  Commissioners  of  Trade  and  Plantations: — "I 
thought  myself  obliged  to  acquaint  your  Lordships,  that 
nothing  could  tend  more  to  the  encrease  of  Trade,  and 
the  prosperity  and  good  of  these  parts  of  the  World,  than 
what  your  Lordships  have  proposed,  the  reducing  all  the 
Coynes  of  America  to  one  standard.  It  will  make  most 
of  the  money  center  in  England."  A  Virginian  proposes 
the  same  step  to  his  correspondent  in  London,  and  thus 
expresses  himself, — "  which  standard,  I  humbly  conceive, 
should  be  as  near  the  intrinsick  value  of  sterling  as  pos- 
sible." 

1704.  In  accordance  with  this  plan,  which  appears  to  have 
June   i)QQYi  extensively  discussed  in  both  England  and  America, 

her  Majesty  issues  a  proclamation  from  the  castle  at  Wind- 
sor. Its  tenor  is  as  follows  : — 
Dec.  ^ "  We  having  had  under  consideration  the  different 
^^  rates  at  which  the  same  species  of  Foreign  coins  do  pass 
in  our  several  Colonies  and  Plantations  in  America,  and 
the  inconveniencies  thereof,  by  the  indirect  practice  of 
drawing  money  from  one  Plantation  to  another,  to  the 
great  prejudice  of  the  Trade  of  our  subjects,  and  being 
sensible,  that  the  same  cannot  be  otherwise  remedied, 
than  by  the  reducing  of  all  foreign  Coins  to  the  same  cur- 
rent rate  within  all  our  Dominions  in  America :  and  the 
principal  officers  of  our  mint  having  laid  before  us  a  Table 
of  the  value  of  the  several  Foreign  Coins,  whicli  usually 
pass  in  Payments  in  our  said  Plantations,  according  to 
their  weight,  and  the  assays  made  of  them  in  our  mint, 

'  Mass.  Province  Records.  ^Boston  News  Letter,  No.  34. 

*  Mass.  Hist.  Col.  3  s.  vol.  vii.  p.  226. 


MASSACHUSETTS  CURRENCY. 


59 


thereby  showing  the  just  proportion,  which  each  Coin  1794. 
ought  to  have  to  the  other,  which  is  as  folio weth."     Then  "^"^ 
a  description  is  given  which  accords  with  the  following 
Table. 

"A  computation  made  by  ^Mr.  Newton,  master-worker 
of  the  mint,  according  to  which  all  Foreign  coins  may 
pass  in  her  majesty's  plantations,  in  proportion  to  the  Rate 
limited  in  her  majesty's  Proclamation,  for  Pieces  of  Eight 
of  Seville,  Mexico  and  Pillar. 


Weight  and  inlrinsick  value  of  ihe  following  Speciea. 


pwt.     gr. 


Value. 


R.ue  of  the  sxul  piecea  ia 
pru|K>nion  to  ihe  limit;«iioa 
made  by  said  pruct.iinaUoo, 


To  be  takei:  for  in  the 
Plantatioas. 


Seville  ps.  of  Eight  old  plate,  17  12  4/6  6/ 

n      new    "  14  3/7i  4/9i 

Mexico  ps.   "  17  12  4/6  6/ 

Pillar  ps.  of  Eight,  17  12  4/6|  6/ 

Peru    "  "  17  12  4/5  5/10^ 

Cross  Dollars,  ]8  4/4|  5/10^ 

Ducatoons  of  Flanders,  20  21  5/6  7/4 

Ecus  of  France  or  Silver  Lewis,  17  12  4/6  6/ 

Crusados  of  Portugal,  11     4  2/10  3/9i 

Three  guilder  pieces  of  Holland,  20     7  5/2i  .6/11 

Old  Rix  dollars  of  the  Empire,  18  10  4/6  6/ 

All  halves,  quarters,  and  less  pieces,  are  to  pass  in  proportion  to 
the  above  rates. 


i4 


£  a 


^J 


2  Relative  to  this  document.  Governor  Dudley  thus  ex-  Dec. 
presses  himself  in  his  speech  to  the  Court.  ''By  the  "'• 
last  ships  I  received  her  Majesty's  proclamation  referring 
to  the  value  of  pieces-of-eight  and  other  money,  with 
command  to  publish  the  same  in  both  governments  in  the 
most  solemn  manner,  and  to  take  care  that  there  be  no 
further  inconvenience  in  that  matter,  by  which  I  hope  we 
shall  see  the  end  of  all  our  complaints  of  clipping  of 
money,  and  those  rates  being  the  same  for  all  her  Ma- 
jesty's Plantations,  I  have  reason  to  expect  that  our  supply 
of  money  and  trade  will  well  proceed  in  proportion  with 
our  neighbours." 

^However   this  order  of  the   Queen  was  particularly 
given,  and  promptly  enjoined  by  her  Governors  in  America, 


'  Sir  Isaac  Newton.         *Mase.  Archives — Speeches  and  Messages,  vol.  i. 
'  Gouge's  American  Banking. 


gQ  HISTORICAL  ACCOUNT  OF 

1705.  yst  it  does  not  seem  to  have  been  obeyed,  except  in  Bar- 
badoes. 

^  Relative  to  the  paper,  used  for  Treasury  notes,  and 
imported  from  the  mother  country,  the  Treasurer  is  re- 
quested to  obtain  forty  reams  in  London,  every  ten  of 
which  are  to  have  a  different  stamp,  so  that  an  impression 
may  be  visible  in  the  centre  of  each  bill,  which,  as  the 
order  reads,  "will  prevent  any  counterfeit,  without  the 
agreement  of  the  Stationers  and  paper  officers,  which  may 
not  be  supposed,  and  that  the  company  of  Stationers,  who 
have  the  sole  making  of  paper  in  England,  be  prayed  not 
to  use  those  stamps  on  any  other  occasion." 

March  Perceiving  that  hard  money  was  alike  subject  to  the 
'  arts  of  fraud  with  paper,  Gov.  Dudley  issues  a  Proclama- 
tion. This  says,  "As  by  corrupt,  wicked  practices  of 
some  ill  men,  the  running  Coins  within  this  Province  are 
so  debased  and  impaired  by  rounding  and  clipping,  to  the 
rendering  of  her  Majesty's  royal  intention  impractical," 
it  is  ordered,  "that  no  money  shall  pass  by  Tale,  but 
what  is  of  due  weight  according  to  her  Majesty's  Procla- 
mation and  the  laws  of  this  Province,  that  all  other  light 
money  and  plate  of  sterling  alloy  shall  pass  and  be  good 
in  payments  by  the  ounce  Troy,  pro  rata,  until  the  end  of 
the  session  of  this  Court  in  May  next,  when  further  con- 
sideration shall  be  had  thereof." 

June       ^  The  General  Court  confirm  the  Governor's  Proclama- 
tion  as  to  the  standard  of  Coins.  "^ 

1706.  Various  other  expedients,  for  the  same  end,  such  as  the 
\^'  public  reading  of  a  Proclamation  by  Queen  Ann,   dated 

March  5,  1705,  and  sending  fac  similes  of  the  paper  money 
to  every  town,  were  adopted,  as  a  hindrance  to  the  harpies, 
who  lay  in  wait  to  prey  on  the  vitals  of  the  body  politic. 
Still,  as  "love  laughs  at  locksmiths,"  so  did  the  public 
defrauder  at  these  methods  for  spoiling  his  game. 

"^Not  only  did  such  characters  put  forth  their  powers  to 

'  Mass.  Archives — Pecuniary,  vol.  money  and   Plate   of  sterling   alloy 

ii.  shall  pass  and  be  good  in  pa\-ments 

*  Provincial  Records.  at  7s.  oz.    The  House  non-concurred. 

■•The    Council,   in   their  vote    for  Afterwards    they  agreed    with    the 

the    Governor's    Proclamation,  say,  Council  in  this  particular. 

March  3,  1705,  that  all  other' light  ^Boston  News   Letter,   No.    174. 


MASSACHUSETTS  CURRENCY.  gj 

fill  their  pockets  at  the  public  expense,  but  also  at  that  of  1707. 
individuals.      Tlie    subsequent   fact   was   one    of  many,  "T-TiT 
which  showed  that  private  deposits  for  money  were  not  so     11. 
safe  as  those  of  modern  years,  in  banking  institutions, 
though  these  have  not  always  escaped  the  reach  of  the 
plunderer.     The  brick  ware-house  of  Thomas  Palmer  on 
the  Dock  in  Boston,  was  broken  open,  and  a  large  iron 
chest  with  nine  bolts  was  robbed  of  its  contents,  amount- 
ing  to   £4,000    or    more,    in   pieces-of-eight   and    other 
Spanish  and  New  England  coins,  and  in  bills  of  credit. 
Several  persons  were  suspected.      The  Governor  issued 
a  proclamation,   offering  pardon  to  all  confessors  of  the 
crime,  except   the  principal  and  immediate  actor,  and  a 
reward  of  ten  per  cent,  for  all  of  the  property  returned, 
which  was  to  be  paid  by  the  owner. 

^  As  a  specimen  of  pecuniary  remittances,  the  ensuing  1708. 
is  presented.     "  Any  merchants  or  others  that  have  any     g^" 
money  at  New  York,  and  want  to  remit  the  same  by  bills 
of  exchange  to  Boston,  let  them  apply  themselves  to  ]Mi-. 
Benjamin   Faneuil  of   New  York,  where   they  may    be 
supplied." 

At  this  period,  before  and  afterwards,  till  the  modern 
system  of  banking  was  adopted,  almost  every  family 
who  had  money,  would  keep  a  pair  of  scales,  to  ascer- 
tain the  value  of  their  gold  coin  which  they  took  and 
passed.  Such  advertisements  as  the  subsequent  one  were 
common  after  newspapers  began  to  be  printed  here.  "All 
kinds  of  money  scales  made  and  sold  by  Caleb  Ray,  of 
Boston." 

While  thus  energetic  to  protect  the  monied  interests, 
our  civil  authorities,  in  common  with  the  people,  partook 
of  the  ruling  passion  of  England,  for  the  dislodgement  of 
the  French  from  North  America,  as  the  only  permanent 
security  for  British  empire  in  these  Colonies.  They  were 
assured  by  her  Majesty,  that  her  Exchequer  should  meet 
the  costs  of  any  expedition  against  the  Canadas.  Thus 
encouraged,  they  soon  yielded  to  her  proposal.  But  such 
an  attempt  was  not  to  be  made  without  price.     For  its 

'  Boston  News  Letter,  No.  211. 


g2  HISTORICAL  ACCOUNT  OF 

1709.  commencement,  there  was  but  little  specie  in  the  country. 

-t'"^'  More  paper  currency  must  be  provided.     ^  Accordingly  it 

10.    is  enacted  that  £30,000  be  issued,  with  £10,000  of  the 

former  emission.     The  printer  has  particular  instruction  to 

impress  a  ''  scrowle  of  red  ink  through  the  body  of  the 

bill,  the  better  to  prevent  comUerfeits." 

1711.  After  some  delay,  for  want  of  orders  from  the  Crown, 
24^  General  Hill  and  Admiral  Walker  obtain  £10,000  more 
in  our  bills  to  supply  the  land  and  sea  forces.  For  the 
amount  of  both  sums,  bills  of  exchange  are  to  be  drawn 
on  the  Royal  Exchequer,  at  the  advance  of  forty  per  cent. 
Thus  another  quantity  of  paper,  large  for  the  age,  is  called 
out  by  an  enterprise,  like  that  which  produced  the  first 
issue  of  such  money  from  the  Treasury.  Both  of  these 
occasions  were  prolific  sources  of  evil  to  the  Province. 
Had  they  been  crowned  with  success,  they  would  have 
been  differently  considered.  Not  the  least  of  their  unde- 
sirable effects  was  fastening  upon  community  a  medium 
of  exchange,  unaccompanied  with  a  necessary  proportion 
of  specie  to  keep  it  safe,  which  finally  impoverished 
thousands,  and  became  the  origin  of  party  animosities. 
Had  the  event  been  proportionate  to  the  freeness,  with 
which  our  fathers  pom'ed  out  their  treasure  and  blood, 
they  would  not  have  again  experienced  the  bitter  and 
fearful  disappointment  of  defeat.  But  they  were  yet  to 
make  more  energetic  efl"orts,  to  endure  many  hardships, 
to  lose  multitudes  of  lives,  and  to  expend  immense  sums, 
before  the  flag  of  France  was  to  be  struck  on  the  ram- 
parts, which  skirted  the  North  and  West  of  the  British 
Territory. 

^  Another  evil,  consequent  on  the  second  crusade,  as  it 
was  here  construed — against  Canada — was,  that  it  brought 
the  rest  of  New  England  and  other  Colonies  under  a 
sort  of  necessity  of  emitting  bills  of  credit  to  pay  their 
quotas  of  military  forces.  This  was  an  inlet  of  much 
unsafe  currency  into  our  jurisdiction,  which  tended  to 
diminish  the  value  of  what  Massachusetts  issued. 

^  Massachusetts  Archives — Pecu-  ^  Discourse  on  American  Colonial 
niary,  vol.  ii.  Currencies. 


MASSACHUSETTS  CURRENCY. 


G3 


With  regard  to  the  emissions  of  this  Province,  there  j^n 
was  a  further  cause,  which  operated  unfavorably  to  them.  -^-^' 
After  their  first  year,  they  stood  well  till  1712.  Then 
they  visibly  and  gradually  lost  pubhc  confidence.  This 
was  owing  to  the  manner,  in  which  our  government  were 
forced  to  prolong  the  period  for  their  redemption.  ^  The 
new  emission  of  1703  was  to  be  cancelled  by  taxes  on 
polls  and  estates,  in  some  over  a  year.  This  was  as  soon 
as  the  public  rates  could  be  conveniently  collected,  and 
therefore  not  an  injudicious  step  of  the  government.  Other 
emissions,  to  1707,  were  to  be  redeemed  from  one  and  a 
half  to  nearly  two  years.  But  in  the  year  just  named,  the 
gathering  of  the  taxes,,  so  that  the  issues  of  paper  might  be 
recalled,  Avas  put  off  for  three  years ;  in  1709,  for  four 
years;  in  1710,  for  five  years,  and  1711  for  six  years. 
By  such  management,  the  burden  of  public  debt  was 
increased,  and  the  Province  bills  accordingly  multiplied  and 
depreciated.  The  faith  of  the  people  being  thus  shaken, 
with  regard  to  this  currency,  it  becomes  less  and  less,  to  an 
alarming  and  injurious  degree,  as  we  shall  have  occasion 
to  notice.  At  first  view,  such  a  change  should  not  have 
been  suffered  by  government ;  but,  in  practice  they  had 
many  discouragements  and  difficulties  to  prevent  their 
avoiding  of  its  commencement  and  continuance.  The 
voice  of  a  protracted  and  expensive  war,  continually  and 
imperiously  demanded  of  them  more  money  than  the 
inhabitants  could  pay  without  much  depression,  or  than 
they  could  punctually  obtain.  They  were  under  such  a 
pressure,  that  they  unwillingly  submitted  to  the  evil  of 
burdening  a  future  period  with  the  expenses  of  the  pres- 
ent ;  of  rendering  the  children  liable  to  pay  the  debts  of 
their  fathers. 

-  As  an  example  of  the  worth  of  money  in  labor,  the 
following  is  presented: — Carpenters  had  5'  a  day  for 
building  the  Town  House  of  Boston,  in  1712,  with  silver 
at  8^  an  ounce. 

As  explanatory  of  a  mode  in  which  the  paper  of  other 
Provinces  was  circulated  in  ours,  we  have  the  succeed- 

'  Mass.  Provincial  Records.  =  Discourse  on  Colonial  Currency. 


,X 


64  HISTORICAL  ACCOUNT  OF 

1712.  iiig  '• — ^ "  Her  majesty's  government  of  the  Province  of  New 

'J^^  Hampshire,  have  ordered  a  certain  sum  of  their  bills  of 
2.     public  credit  to  be  deposited  in  the  hands  of  Mr.  James 
Pemberton  of  Boston,  merchant,  to  whom  all  persons,  that 
have  any  of  the  said  bills,  which  are  worn  out  and  unser- 
viceable, may  repair  to  have  them  exchanged." 

Nov.  2  jj-^  order  to  arrest  the  downward  progress  of  the  credit, 
sustained  by  paper  currency,  there  is  a  repeated  enactment 
that  it  shall  be,  at  all  events,  specialties  of  contract 
excepted,  a  legal  tender.  This  measure  failed  of  its  pur- 
pose. Under  its  long  continuance,  many  debtors  delayed 
their  payments  so  as  to  meet  them  with  bills,  purchased 
at  an  increasingly  reduced  rate.  Such  management  was 
the  spring  of  numerous  litigations.  Then  they  who 
were  no  more  closely  clad  with  the  garb  of  honesty, 
than  to  put  it  off  as  expediency  might  dictate,  exhibited 
their  propensity.  Then  such  acquired  temporary  gain,  if 
that  may  be  called  so,  which  destroys  principle,  peace  and 
reputation,  while  those  of  sterner  integrity,  lost  in  their 
worldly  possessions,  though  increasing  in  a  thousand  fold 
more  in  habits  of  moral  excellence  and  in  conscious  recti- 
tude. Indeed,  it  is  a  wise  and  merciful  provision  of  our 
Maker,  that  mind,  in  its  talents,  attaimnents,  and  especially 
in  its  virtuous  traits,  should  be  an  "immutable  measure 
of  the  man." 

1714.  ^At  this  period,  there  were  three  dominant  parties  with 
reference  to  pecuniary  concerns.  One,  adopting  the  prin- 
ciple of  antiquity, — "  nil  utile,  quod  non,  honestum — 
nothing  is  useful,  but  what  is  honest, — expressing  their 
views  of  paper  currency,  contended  that  this  should  be 
abolished  and  no  currency  allowed,  except  that  of  the 
precious  metals.  A  second,  both  numerous  and  respecta- 
ble, who  were  urgent  for  a  private  bank,  based  on  real 
estate.  A  third,  no  less  large  and  honorable,  who  favored 
a  system  of  loaning  by  the  Province  to  the  inhabitants  on 
interest,  payable  annually,  and  applied  to  liquidate  public 

'  Boston  News  Letter.  Bank  of  Credit  against  aspersions  of 

2  Mass.  Provincial  Records.  Paul  Dudley   by  John  Barrel,  Esq. 

■^  Boston  Athenseum  Tracts,  C  55  Hutchinson, 
and  62,   121.      Vindication  of   the 


MASSACHUSETTS  CURRENCY. 


65 


charges.  From  these  confederations  arose  controversy,  1714. 
which  scattered  its  baleful  inlhicnce  through  towns,  par-  — ^'^' 
ishes,  and  even  families.  Tlie  advocates  for  a  bank  liold 
up,  among  several  inducements,  that  if  allowed  to  estal^lish 
one,  they  will  promote  the  erection  of  a  ^  bridge  over 
Charles  River.  Tlie  reply,  subsequently  made  to  this 
from  the  press,  shows  a  prevailing  want  of  acquaintance 
witii  such  works,  and  how  they  were  suspected  by  no 
small  number,  as  nothing  more  than  fancies  of  a  disordered 
intellect.  It  follows  : — "  One  great  thing  proposed,  hath 
been  the  building  of  a  bridge  over  Charles  River,  and  that 
it  would  be  a  service  to  li^.  This,  I  look  at  to  be  next  to 
building  castles  in  the  air.  For  if  we  could  sink  40  or 
£50,000  in  building  such  a  bridge,  the  matter  is  uncer- 
tain, whether  it  would  answer  the  end.  For  I  can't  learn 
of  a  fast  bridare  over  such  a  river  where  there  is  such  a 


*^&^ 


stream  in  the  whole  world."  Could  Charlestown  bridge, 
however  forlorn  its  aspect,  and  the  similar  avenues  to  this 
peninsula,  be  gifted  with  tongues,  what  would  they  say 
to  such  writers?  But,  not  to  lose  the  clue  of  our  course, 
the  question  respecting  the  bank,  produced  many  spirited 
pros  and  cons.  Among  the  merchants  of  this  metropolis, 
who  forcibly  argued  the  claims  of  such  an  institution,  was 
John  Colman.  He  asserted,  that  it  would  not  lessen  the 
coin ;  for  to  his  knowledge,  it  was  shipped  off  as  much 
before  bills  of  credit  as  afterwards,  in  proportion  to  the 
trade  and  resources  of  the  Province.  He  further  stated, 
that  the  belief  of  New  England  in  general  was,  that  the 
country  might  count  on  greater  depressions,  unless  there 
could  be  issues  of  notes  from  private  companies  as  well  as 
from  the  public  treasury.  Another  argument  in  favor  of 
this  plan  was,  that  it  would  sever  the  connection  between 
money  and  might — already  in  the  hands  of  the  govern- 
ment and  dangerous  to  the  liberties  of  the  people.  On 
the  other  hand,  his  project  was  not  tenderly  dealt  with  by 

'  June  4, 1712.     Rhode  Island  pro-  and  Company,  potition  for  a  bridge 

poses  to  Massachusetts  that  a  bridge  over  Ciiarles  River.    Neither  of  these 

be  erected  over  Pawtucket  River,  at  |)rojects    was    immediately    accoiu- 

Ihe  cost  of  both  Colonics.  plishcd. 

March  l"i,  1713.    John  Clark,  Esq. 

0 


QQ  HISTORICAL  ACCOUNT  OF 

1714.  its  opponents.     They  severely  censured  it,  as  a  South  Sea 

^^•'^^  bubble,   a  pandora's  box,  an  infringement  of   the  regal 

prerogative,   and  covering  a  design  for   absolute    power. 

These    specimens  teach  us,   how  the  mind  of   one   age 

answers  to  the  mind  of  another,  when  called  to  the  same 

point  of  debate.     Amid  a  conflict  of  this  sort,  the  common 

voice  cried  vehemently  and   repeatedly  for  more    paper 

money,  from  some  source  or  another. 

Feb.       ^  Thus  confirmed  in  their  wishes,  a  considerable  number 

'     of   gentlemen   met  at  the  Exchange  Tavern  of  Boston 

several  times,  to  have  the  stock  of  a  proposed  bank  taken 

up,  and  prepare  to  lay  their  rule?  before  the  General  Court 

for  approbation. 

^  Hoping  to  check  the  prevalent  practice  of  counterfeiting 
their  bills  of  credit,  the  Legislature  enact  that  whoever  is 
guilty  of  such  a  crime  more  than  once,  shall  suffer  death. 
^  The  amount  of  bills  of  credit  made  and  received  into 
the  Treasury  of  Massachusetts  from  May,  1703  to  May, 
1714,  was  £194,950  13. 
Aug.  ^  Perceiving  that  the  project  of  a  private  bank  was  likely 
to  succeed,  unless  resisted  by  Legislative  interference,  the 
Province  Council  hold  a  convention,  and  vote  the  follow- 
ing order  : — "  Upon  reading  a  memorial,  presented  by  the 
dueen's  Attorney  General,  setting  forth,  that  upon  good 
information,  a  certain  number  of  gentlemen  and  merchants 
are  projecting  a  bank  of  credit,  as  they  call  it,  and  design 
speedily  to  make  and  emit  a  quantity  of  bills  to  a  great 
value,  which  is  a  matter  of  importance  and  will  necessarily 
be  of  general  influence,  Ordered,  that  the  projectors  or 
undertakers  of  any  such  bank  do  not  proceed  to  print  the 
said  scheme,  or  put  the  same  on  public  record,  make  or 
emit  any  of  their  notes  or  bills,  until  they  have  laid  their 
proposals  before  the  General  Assembly  of  her  Majesty's 
Province,  who  are  always  ready  to  countenance  and 
encourage  any  proposals,  that  may  be  a  benefit  and  advan- 
tage for  the   public,  or   for  the   promotion   and   encour- 

1  Boston  News  Letter,  No.  512.  ■*  Boston  News  Letter,  August  20, 

*  Mass.  Provincial  Records.  1714. 

^  Massachusetts    Archives — Pecu- 
niary, vol.  ii. 


20. 


IfTASSACnUSETTS  CURRENCY. 


67 


aging  of  trade  amongst  her  Majesty's  good  subjects  of  this  1714. 
Province."  -^v^.^ 

Thus  cautioned,  the   patrons  of  the  intended  bank,  did      »  . 
not   cease    to   make   active   exertions'  for    its   promotion. 
They  issue   the  ensuing  advertisement  -.^  "  Whereas  the    \\i<t. 
trade  of  tliis  Province  is  very  much  embarrassed  for  want     ^3. 
of  a  medium  of  exchange,  and  an  expedient  being  pro- 
posed to  ease  this  dithculty  by  circulating  bills  or  notes 
founded  on  land  security,  considerable  sums  being  already 
subscribed,"  there  will  be  attendance  at  the  Sun  Tavern 
of  Boston,  weekly,  to  conwlete  the  subscriptions  for  enter- 
ing into  partnership. 

In  less  than  two  months  from  this  they  meet  to  choose    Oct. 
directors  of  their  institution,  which  went  by  the  name  of 
Land  Bank,  subsequently  applied  to  another,  which  gave 
rise  to  immense  trouble. 

While  they  were  thus  striving  to  advance,  a  majority  of 
the  government  thought  it  best  for  themselves  alone  to 
hold  the  purse  strings  of  the  Province.  The  opinion  of 
the  Legislature  is  regarded  as  less  objectionable  than  that 
of  the  bank  party,  by  those  who  preferred  hard  money, 
therefore  such  an  opinion  receives  the  support  of  these 
and  becomes  embodied  in  a  law.  The  introduction  of 
this  act  follows  : — ~  "  Whereas  the  public  bills  of  credit  on  Nov. 
this  Province,  which  have  so  long  and  happily  supported 
this  his  Majesty's  government  in  the  long  and  expensive 
war  with  the  French  and  Indians  in  our  neighborhood, 
for  defraying  the  necessary  charges  thereof  in  the  defence 
of  his  Majesty's  subjects'  interests  in  this  as  well  as  the 
neighboring  Provinces  and  Colonies,  (and  the  preventing 
the  inconveniences  that  may  arise  to  the  Province  by  any 
private  projection  for  providing  any  other  medium  of 
exchange,)  and  served  as  a  medium  of  commerce  in  the 
business  and  trade  of  this  Province,  greatly  facilitating 
payments  for  goods  imported  from  Great  Britain  and  other 
places,  are  now  grown  very  scarce  and  few  of  them  passing 
in  proportion  to  the  great  demand  of  the  same,  whereby  the 
affairs  of  the  Government  are  very  much  hindered,  the  pay- 

'  Boston  News  Letter,  Aug.  23,  1714.  ^  Mass.  Provincial  Records. 


gg  /■    .       *  ^  HISTORItrSlTACCOUNT  OF« 


'  *  1 7 1  J\  men^-of  the^'public  debts  aiid  taxes  retarded,  and  in  great 

,  ^  '"^^^  measure  rendered  impraeticabk,  and  the  trade  and  business 

J7^    of  this   Province    bijth  at  home   and   abroad   is   greatly 

obstructed  to  the  g.r*eat  discouragement  and  distress  of  the 

;  Province."      Therefore    £50,000   in   bills,   of   the    same 

tenor  with  those  already  issued,  are  to  be  put  in  the  hands 

of  five    Trustees,  and  let  out  at  five  per  cent,   e-n   safe 

mortgages  of  real  estate,   one-fifth  part  of  the  principal 

with  interest  payable  each  year.     ^  Though  the  loans  were 

restricted  as  to  time,  yet  some  of  them  were  continually 

made,  so  that  they  were  out  over  thirty  years.     No  person 

was  to  hire  more  than   £500,  iror  less  than  £50,  of  this 

Province  loan.     The  income  of  it   is  to   help  liquidate 

public  charges. 

Having  in  this  manner  made  a  bank  of  the  Province, 
so  that  no  sufiicient  call  might  exist  for  the  one  projected 
by  individuals,  as  a  more  private  concern,  the  Legislature 
proceed  to  give  the  finishing  blow  to  this  association: — 
Nov.  ^  "  A  scheme  for  establishing  a  fund  or  bank  of  credit  upon 
**•     a  land  security,  which  may  give  the  bills  issued  therefrom 
a  general  currency — sent  up  from  the  Representatives  with 
an  order  pasged  thereon,  that  is  to  say — Ordered  that  no 
private  company  or  partnership  proceed  to   the  making  or 
emitting  of  any  bills  of  credit,  as  a  medium  of  exchange 
in  trade,  without  the    allowance  and  approbation  of  the 
Court."     Such  an  order  passed  the  Council  and  was  ap- 
proved by  the  Governor. 
1715       ^Governor  Dudley  in  his  speech,  reverting  to  his  pro- 
/        May   posal,  the  foregoing  session,  that  the  bills,  still  out,  might 
be   recalled,    says,    they    "  passed    with   honom* ;    if  not 
redeemed,  they  will  depreciate." 
June       ^  ^^Q  mercantile  part  of  community  were  still   dissatis- 
21.    fied  with  what  they  deemed  the  insufficiency  of  the  loan, 
made   by   the   government.       Simon    Stoddard   and   one 
hundi'ed  and  eighty  others  of  Boston  and  elsewhere,  peti- 
tioned that  they  would  provide  a  larger  medium  of  ex- 
change in  trade.     Their  request  was  laid  over  to  the  next 
session.     Though  the  supporters  of  the  Land  Bank  were 

'  Letters  from  Boston  on  Currency.  ■•  Journal  of  the  House. 

*  Mass.  Provincial  Records.  "»  Mass.  Provincial  Records. 


MASSACHUSETTS  CURRENCY. 


69 


defeated,  they  were  not  conquered.     Their  fall  only  made  1715. 
them  more  careful  and  determined  to  stand,  ^--v-^ 

^  The  enactment  relative  to  debtors  not  being  forced  to  Dec. 
pay  their  obligations,  contracted  from  1705  to  1715,  in  '^' 
hard  money,  except  they  had  specially  agreed  to  do  so,  is 
prolonged  to  October  30,  1722.  While  this  betrayed  a 
very  unsound  state  of  currency,  it  prolonged  and  increased 
tem})tations  to  take  advantage  of  creditors  by  paying  them 
in  bills  continually  reduced  in  value,  and  also  occasions  of 
animosities  and  litigations.  It  was  only  binding  up  the 
wound  of  community  with  unsuitable,  injurious  and  peril- 
ous preparations  of  well  intended,  but  ill-directed  art.  It 
increased  the  very  disease  which  it  was  given  to  cure. 

As  Governor  Dudley-  had  honestly  and  strenuously 
opposed  the  design  of  friends  to  the  Land  Bank,  though 
formerly  the  promoter  of  a  similar  one,  they  did  much  for 
his  removal. 

"'In  answer  to  a  letter  of  the  General  Court  to  Jeremiah  171c. 
Dummer  in  London,  he  writes  in  the  subsequent  terms : —  Feb. 
"  I  have  received  the  three  instructions  agreed  on  the  last 
October  session,  which  I  shall  carefully  observe.  Only 
that,  which  commands  me  to  oppose  any  attempts,  that 
may  be  made  here  to  incorporate  a  private  bank  in  New 
England,  is  that  there  will  probably  be  no  occasion  to 
make  use  of.  For  the  gentlemen,  who  have  been  desired 
from  Boston  to  solicit  this  business,  have  not  yet  moved 
in  it,  and  I  am  informed  by  one  of  them,  that  they  do  not 
design  to  stir  in  it  at  all.  Some  other  people  having  heard 
of  it,  and  of  the  exigency  which  the  country  was  reduced 
to  for  want  of  money  or  some  other  medium  of  trade,  have 
started  a  project  for  the  coining  (of)  base  money  here,  that 
is  to  say,  one  third  copper  and  the  rest  silver,  to  pass  in 
New  England,  which  they  pretend  will  answer  all  the 
necessities  of  trade,  tho'  in  truth  it  will  answer  nothing 
but  their  own  private  gain,  which  they  propose  by  it. 
Upon  the  first  notice  I  had  of  this  project,  I  waited  on 
several  of  the  ministry  in  order  to  speak  to  them  of  the 

'  Acts''of  Massachusetts.  •'Massachusetts     Archives  —  Let- 

-  Governor  Dudley  takes  leave  of      ters,  vol.  ii. 
the  General  Court,  Oct.  Id,  1715. 


70 


HISTORICAL   ACCOUNT   OF 


1716.  destructive  consequences  of  it,  if  it  should  take  effect ;  but 
" — '"^  their  Lordships  would  not  hear  me  upon  it,  for  they  were 

so  clear  in  that,  they  assured  nie  at  once  that  no  such 

thing  should  be  done." 

Nov.        After  Mr.    Shute's  ^  arrival  at  Boston,  as  chief  mao:is- 

7 

trate,  he  recommended  in  his  first  speech,  that  endeavors 

should  be  made  to  revive  the  low  state  of  trade.  This 
was  taken  as  an  intimation,  by  the  House,  that  another 
loan  from  the  Treasury  would  receive  his  sanction.  They 
seem  to  have  viewed  such  a  mode  of  supplying  needed 
funds,  as  a  sort  of  Pactolus,  which  could  bring  treasure  to 
their  feet  without  consequent  privation  and  misery. 
Dec.  ~  Hence  it  was  forthwith  ordered  that  there  be  an  addi- 
tional loan  of  £100,000.  The  reasons  assigned  for  this 
enactment,  was  the  heavy  debt  incurred  lately  in  the 
French  war,  that  all  the  hard  money  which  formerly  aided 
the  trade  was  sent  to  pay  for  debts  contracted  in  England, 
and  the  scarcity  of  Province  bills.  This  amount  was 
committed  to  the  care  of  county  Trustees ;  was  propor- 
tioned to  each  county  according  to  its  tax ;  secured  by 
mortgaged  estates  of  double  the  value  of  the  sum  bor- 
rowed, each  loan  not  exceeding  £500  nor  mider  £25,  for 
ten  years  at  five  per  cent.,  paid  annually.  The  profits  to 
help  pay  for  expenses  of  government,  and  the  bills  to  be 
returned  at  the  end  of  this  period  and  burnt.  P^requent 
litigations  subsequently  arose  in  the  settlement  of  the 
mortgages  for  this  money.  ^  A  speedy  result  of  this 
emission  was  to  depreciate  the  paper  currency  by  raising 
silver  to  12'  the  oz. 

Governor  Shute  perceives  that  the  financial  concerns  of 
the  Province  are  going  from  bad  to  worse.  He  regrets  to 
the  Legislature,  that  they  had  been  no  more  punctual  and 
active  in  retrieving  the  credit  of  their  notes.  He  proceeds, 
1718.  ^"The  ill  consequences  of  our  not  giving  due  attention  to 
^^^y  these  weighty  aftairs  are  every  day  increasing,  and  they 
will  inevitably  end  in  our  utter  destruction,  if  not  timely 
removed.     If  you  would  reflect  a  little  upon  the  miserable 

'  Governor  Shute  arrives,  October  ^  Discourse  on  Colonial  Currency. 

14,1716.  ''Massachusetts     Provincial    Re- 

^  General  Court  Records.  cords. 


MASSACHUSETTS  CURRENCY. 


71 


state   of   our   neighbours   at  Carolina,^   it  would  awake  jyig. 
you."     As  the   General  Court  conclude  that  it  is  out  of  •-^'^^ 
their  power  to  comply  with  this  energetic  appeal,  they 
make  no  sufficient  efibrt  to  resist  the  torrent  of  calamity. 

A  writer  upon  the  times,  expresses  himself  in  the  sub- 
sequent strain: — -"I  suppose  this  Province  doth  not  raise  1719. 
nigh  so  much  provisions  as  are  needful  to  feed  ourselves  '(j^ 
and  su])ply  our  shipping.  We  buy  much  from  other 
places ;  while  so,  would  it  not  be  an  hurt  to  send  any 
provisions  to  a  foreign  market  ?  But  out  of  the  products 
of  our  labour,  we  may  spare  great  quantities  of  fish,  oyl, 
whalebone,  etc.,  and  for  these,  what  returns  should  we 
chietiy  desire  ?  Why — things  that  are  most  serviceable  and 
necessary  for  us,  and  not  for  needless  commodities."  He 
goes  on  to  state,  that  too  much  rum  is  imported,  which  is 
a  great  injmy  to  the  Province.  He  remarks  fmther —  . 
"All  the  silver  money  which  formerly  made  payments  in  ""' 
trade  to  b^  easy,  is  now  sent  into  Great  Britain  to  make 
returns  for  part  of  what  is  owing  there.  We  have  been 
so  deficient  in  farming  and  managing  our  own  manufac- 
ture, lived  so  much  above  our  abilities,  spent  so  much  of 
our  imported  commodities,  that  our  money  is  gone,  there 
is  scarce  a  penny  of  it  passing  for  a  twelvemonth."  He 
informs  us,  that,  notwithstanding  the  promptness  Avith 
which  government  had  resisted  the  late  projected  bank  of 
individuals,  its  notes  or  bills  are  still  in  circulation.  With 
reference  to  a  new  arrangement  in  the  means  of  recalling 
the  Province  bills,  he  remarks  that  they  are  to  be  redeemed 
by  any  stock  in  the  Treasury,  so  that  they  who  keep  bills 
expecting  to  obtain  silver,  may  get  country  produce. 

^  Another  observer  of  the  times,  who  was  more  in  favor 
of  paper  currency  than  his  cotemporary  opponent,  gives 
the  ensuing  statements : — The  evils  of  litigation  abound. 
People  of  estates  cannot  raise  money,  unless  they  dispose 

'  South  Carolina,  in  order  to  pay  of  the  notes  was  properly  referred  to 

charges  of  an  expedition  against  the  by    Gov.    Shute,   as   a   warning  for 

Tuscaroras,  issued   in   17l5,  £48,000  Massachusetts. 

in  bills,  as  a  loan,  payable  at  the  rate  -  Melancholy  circumstances  of  the 

of  £4,000,  annually.     This  emission  Province. 

fell  a  third   the  first  year,  and  a  half  ^  Distressed  state   of  the  town  of 

the  second,  and  so  continued  to  de-  BostoH  considered, 
predate.     So  rapid  and  fearful  a  fall 


72  HISTORICAL  ACCOUNT  OF 

1719.  of  them  at  half  their  vakie.     Individuals,  depending  on 
"    '"^  their  labor,  are  forced  to  take  for  their  toil,  from  one  half 

to  two  thirds  in  goods,  while  their  creditors  imperiously 
demand  cash  of  them.  The  private  bank  does  not  receive 
encouragement  in  its  operations  from  the  Legislative  au- 
thorities. £50,000  ought  to  be  laid  out  for  making  a 
bridge  over  Charles  River,  so  that  workmen  might  be 
employed  and  currency  enlarged,  as  well  as  the  public 
accommodated ;  and  ruin  will  come  unless  more  bills  of 
credit  are  emitted.  It  is  hoped  that  country  towns  will 
send  Representatives  to  secure  such  an  emission.  This 
A\Titer  says — '-  It  is  a  dark  day  upon  us,  I  pray  God  to 
guide  and  lead  his  Excellency  and  his  Council  and  others 
concerned  in  the  government,  into  some  measures  for  the 
relief  of  the  people." 
Sept.  As  an  instance,  with  what  pertinacity  an  evil  purpose 
will  compass  sea  and  land  to  be  gratified,  the  succeeding 
fact  is  adduced : — ^  Jeremiah  Dummer,  agent  jn  London, 
had  been  instructed  by  Massachusetts  to  look  after  one 
Bryan,  an  Engraver  on  Tower  Hill,  who  had  assisted 
Woddin  to  comiterfeit  the  Province  bills.  Mr.  Dummer 
employed  an  ingenious  man  to  wait  on  Bryan,  who  told 
him,  that  Woddin  had  carried  the  copper  plate  to  Boston. 

For  lightening  the  bmxlen,  which  pressed  upon  commu- 
nity, a  meeting  of  gentlemen  as  particularized  in  the  sub- 

1720.  sequent  docmnent,  takes  place  : — -In  obedience  to  the  or- 
22.    ders  of  the  Governors  and  Councils  of  the  several  Provinces 

and  Colonies  to  which  the  subscribers  respectively  belong, 
appointing  us  a  committee  or  Commissioners  to  consult, 
what  may  be  done  for  the  public  benefit  with  relation  to 
the  bills  of  Credit.  We  being  met  at  the  Town  house  in 
Boston  on  the  day  abovementioned,  and  having  conferred 
the  subject  matter  before  said,  did  unanimously  agree 
on  the  following  heads — that  is  to  say ;  First,  it  will  be 
greatly  for  the  service  and  benefit  of  the  publick,  not  to 
emit  any  more  bills  on  Loan.  Secondly,  That  no  more 
bills  should  be  emitted,  than  what  are  for  the  necessary 
support  of  the  Government  annually.     Thirdly,  that  it  will 

*  Mass.  Archives — Letters,  vol.  ii.  "  Colonial  Records. 


MASSACHUSETTS  CURRENCY.  73 

be  for  the  piiblick  benefit  and  the  better  repute  of  the  Bills  1720. 
of  Credit  that  the  several  governments  do  firmly  and  -^ — 
closely  adhere  to  the  calling  in  the  same  according  to  the 
several  times  and  periods  prefixed  therefor.  The  forego- 
ing heads  or  proposals  are  humbly  submitted  to  the  con- 
sideration of  the  General  Court  of  the  Province  of  the  Mas- 
sachusetts Bay,  the  Colonies  of  Connecticut,  and  Rhode 
Island,  at  their  next  Court  of  Election,  by 

"Addington  Davenport,       Jona.  Belcher, 
Thos.  HutchinsOxN,  John  Read, 

Thos.  Fitch,  Wm.   Wanton." 

The  Council  approved  and  recommended  such  advice, 
but  the  House  received  it  coldly  and  merely  had  it  read. 
This  was  a  plain  expression  of  the  different  views  enter- 
tained by  these  two  Bodies  on  the  subject  of  currency. 

So  deeply  interested  were  the  vaiious  towns  in  these 
subjects,  that  they  gave  particular  instructions  to  their 
Representatives.  ^  Salem  desire  their  delegates  to  vote  ]\jay 
against  the  project  of  having  Province  bills  issued  to  build  9« 
a  bridge  over  Chai'les  River,  because,  if  allowed,  it  would 
increase  the  public  debt,  and  to  use  all  their  influence  to 
recall  the  issues,  already  in  circulation,  at  their  appointed 
periods. 

~  Among  the  classes  of  society  who  endured  the  most, 
from  existing  state  of  things,  were  widows  and  orphans. 
These  had  lent  their  all,  and  depended  for  subsistence  on 
its  income,  which  was  paid  to  them  in  paper  at  fifty  per 
cent,  discount.  Then,  as  in  all  such  periods  of  social 
convulsions,  the  influences  of  ill  regulated  currency  were 
evidently  pernicious  to  public  morals.  The  barque  enters 
the  gale  with  a  gallant  bearing ;  but  how  altered,  when 
she  emerges !  Is  not  this  the  symbol  of  many  a  character 
passing  through  the  calms  and  storms  of  life  ?  However 
the  people  were  perilously  and  painfully  situated,  yet  the 
most  of  them  omitted  to  trace  much  of  their  wo  to  an 
undue  dependence  on  the  emissions  of  notes  from  the 
Treasury.     Like   an   individual,   under   the   delirium   of 

>  Salem,  Town  Records.  -  Hutchinson. 

10 


1 1 


74  HISTORICAL  ACCOUNT  OF 

1720.  excessive  Stimulus,  crying  for  the  very  liquid  which  has 

""^''"^  produced  his  disease  and  his  pangs,  tliey  were  generally 
urgent  for  an  increase  of  Provincial  bills. 

The  tidings  of  such  a  disposition,  as  prevailed  here,  had 
been  carried  to  the  ear  of  Parliament.  ^  As  one  step,  to 
turn  back  its  onward  course,  this  body  lay  an  interdict 
upon  all  banking  associations  in  their  dominions,  who 
have  no  legal  charter,  so  that  from  June  24,  1720,  they 
shall  cease.  Such  an  act  has  particular  application  to  the 
Private  Bank  of  Boston,  which  had  circulated  their  notes, 
though  forbidden  by  the  Legislature. 

April  2  rpi^g  Governor  laid  a  pamphlet  before  the  Council — 
entitled,  "  Distressed  State  of  the  Town  of  Boston — in  a 
Letter  from  a  Gentleman  to  his  Friend  in  the  Country." 
They  were  of  opinion,  that  it  had  many  passages  reflecting 
on  the  acts  and  laws  of  the  Province  and  other  proceedings 
of  the  Assembly,  and  had  a  tendency  to  disturb  the  ad- 
ministration of  the  Government  as  well  as  the  public  peace. 
They  voted  that  the  Justices  of  the  Peace  at  their  Gen- 
eral Sessions  inquire  after  the  author  and  publisher  of  the 
said  pamphlet,  and  proceed  therein  according  to  the  usual 
mode. 
14  "A  Countryman's  Answer  to  the  Letter,"  (in  the  above 
*Q  pamphlet,)  has  the  succeeding  passage: — "As  to  silver 
and  gold,  we  never  had  much  of  it  in  the  country ;  but 
we  can  very  well  remember,  that  before  we  had  paper 
money,  there  was  a  sufficiency  of  it  current  in  the  coun- 
try, and  as  the  bills  of  credit  came  in  and  multiplied,  the 
silver  ceased  and  was  gone  ;  and  of  all  men,  you  in  Boston, 
especially  merchants,  should  be  silent  as  to  that  matter, 
for  you  have  shipped  it  ofi"  and  yet  now  complain  of  the 
want  of  it."  You  bring  up  the  projected  Private  Bank — 
buried  so  many  years — though  it  is  opposed  by  the  Gen- 
eral Court,  and  a  large  majority  of  Boston. 

jjj]         ^  Backed  by  the  highest  tribunal  of  the  kingdom,  Gov- 
13.    ernor  Shute,  in  his  speech,  repeats  his  advice  to  the  Gen- 
eral Court,  that  they  put  forth  all  their  power  to  raise  the 
falling  credit  of  the  Province  notes  and  relieve  the  deep 

1  Statute,  Geo.  6.      ^  Boston  News  Letter.       ^  Speech  of  Gov.  Shute. 


MASSACHUSETTS  CURRENCY.  75 

distress  of  the  people.  On  tliis  topic,  he  expresses  himself  1720. 
as  follows  : — ''  I  recommend  the  supporting  the  value  of  •^^'^^ 
the  public  bills  of  credit.  This  is  what  I  have  almost  at 
every  session  mentioned,  as  a  matter  not  only  of  justice 
but  of  interest.  And  I  am  more  especially  obliged  to  do 
it  now,  because  the  neighbouring  Governments  looking 
upon  it  as  a  matter  of  the  last  consequence  to  us  all,  have 
lately  appointed  Commissioners  to  inquire  into  that  affair 
and  lay  before  their  respective  General  Assemblies  what 
they  have  thought  proper  for  the  public  good  with  respect 
to  the  Public  Bills  of  credit.  The  unanimous  resolution  of 
the  Commissioners  when  they  met  at  Boston,  I  shall  order 
to  be  laid  before  you.  The  confusions  that  are  in  the 
Colony  of  South  Carolina  by  reason  of  the  paper  credit, 
may  and  I  hope  will  warn  us  of  going  any  fmther  in  any 
medium  of  that  kind.  And  I  am  glad  to  find  the  gener- 
ality of  our  thinking  people  begin  to  be  convinced  that  it 
will  be  for  the  interest  of  the  country,  and  even  of  the 
trading  part,  to  call  in  the  Bills,  as  soon  as  may  be  con- 
venient. I  believe  it  will  be  of  necessity,  when  the  Bills 
become  very  scarce,  for  the  Government  to  think  of  some 
reasonable  method  for  the  ease  of  the  people  in  paying  in 
the  publick  debts,  and  at  the  same  time  to  take  great  care 
not  to  postpone  them,  as  we  have  too  often  done,  to  the 
detriment  of  the  Government  and  lessening  the  value  of  the 
Bills  of  Credit.  I  am  very  well  pleased  to  observe  by  all 
that  have  the  state  of  the  country  and  of  our  Trade  at 
heart,  that  good  husbandry  and  industry  are  unanimously 
agreed  on,  as  among  the  first  and  best  expedients  to  help 
us  under  our  great  difficulties." 

^  To  meet  the  exigencies  of  the  day,  the  General  Court  July- 
modify  the  conditions  of  an  issue  of  £5,000  in  paper 
currency,  so  that  they  present  two  features  different  from 
what  they  had  for  a  considerable  period.  One  was  drop- 
ping the  five  per  cent,  advance,  which  had  been  continued 
for  twenty-eight  years,  as  means  of  preserving  the  Notes 
of  the  Treasury  at  par,  because  it  had  lost  its  intended 
effect.     Another,  was  the  restoring  of  the  former  custom 

'  Mass.  Province  Records. 


76 


HISTORICAL   ACCOUNT   OF 


1720.  of  having  country  produce  substituted  as   a  medium  of 
-^^'^^  exchange,  and  answer  the  purpose  of   money.      It  was 
introduced  again  by  necessities  which  overcame  the  objec- 
tions to  its  re-adoption.     It  was,  however,  found  so  incon- 
venient under  the  new  associations  and  habits  of  business, 
as  to  be  dispensed  with,  for  a  considerable  time,  in  three 
years.     Its  re-appearance  at  this  date,  is  thus  appointed  : — 
"  Whereas  through  the  scarcity  of  bills  of  credit,  it  grows 
difficult  for  persons  to  convert  the  produce  of  their  lands 
and  other  effects  into  bills  and  pay  their  rates  in  them,  it 
is  ordered  that  the  inhabitants  of  this  Province  shall  have 
liberty  (if  they  see  cause)  to  pay  the  several  sums,  which 
shall   be  on   them   respectively  assessed,  in  the   several 
species  hereafter  mentioned,  at  such  rates  and   prices  as 
the  General  Assembly  shall  set  them ;  viz. — ^in  good  barrel 
beef  and  pork,  or  in  wheat,  peas,  barley,  rye,  Indian  corn, 
oats,  flax,  hemp,  bees'  wax,  butter  in  firkins,  cheese,  hides, 
tanned  leather,  dry  fish,  mackerel  in  barrels,  oil,  whale 
bone,  bayberry  wax  or  tallow.     Which  species  shall  be 
received  by  the  Treasurer  of  the  several  constables  and 
collectors,  to  be  by  him  disposed  of  to  the  best  advantage 
for  the  calling  in  of  the  said  bills  into  the  Treasury.     And 
if  any  loss  by  the  sale  of  the  aforesaid  species,  or  by  any 
other  unforeseen  accident  shall  arise,  then  such  deficiences 
shall  be  made  good  by  a  tax  of  the  year  next  following, 
so  as  shall   be  fully  and  effectually  to  call  in  the  whole 
sum  of  £5,000  of  bills  emitted  as  aforesaid."     Additional 
to  these  articles  were  tar  and  turpentine,  in  the  next  year 
but  one. 
Sept.       Perceiving  that  the  Chief  Magistrate  of  Massachusetts 
'    was  hard  pressed  to  sanction  larger  issues  of  paper  cur- 
rency, than  they  deemed  beneficial,  the  government  in 
England  ^  give  instructions  to  him,  as  well  as  to  all  Ameri- 
can Governors,  that  he  allow  only  enough  of  them  to 
meet  the  charges  of  Provincial  administration. 
1721.      Not  harmonizing  with  all  the  opinions  advanced  in  the 
^^^^  Chief  Magistrate's   late    speech,  the  House   sent   him   a 
reply : — "  Your  Excellency  was  pleased   to  acquaint  us 

'  Massacliusetts  Provincial  Records. 


MASSACHUSETTS  CURRENCY.  77 

that  you  lately  assembled  some  of  the  principal  gentlemen  1721. 
and  mercliants  of  Boston,  with  a  view  to  public  good,  that       ■^^ 
they  might  propose  or  receive  schemes  for  the  relief  of 
this  peo})le  under  their   grievance,  for  want   of  a  good 
medium  of  trade.     If  those  gentlemen  when  assembled, 
did  agree  upon  any  method  and  had  laid  the  same  before 
the  House,  it  had  been  very  readily  received  and  due 
consideration  had  thereon.     But  none  such  as  yet  hath 
been   shewn   forth.      Last    session,    a    Bill   for   emitting 
£100,000,  to  help  the  inhabitants  to  pay  their  public  debts, 
passed  the  House,  but  stopt  in  the  Council.     We  feel  it 
our  duty  to  do  all  we  can  this  session  to  promote  such  an 
object.     We  agree  with  your   Excellency,  that  if  a  new 
emission  should  depreciate  the  bills  out,  it  would  be  perni- 
cious.    To  prevent  this,  a  bill  was  passed,  the  present  and 
last  sessions,  to  hinder  buying  and  selling,  bartering  or  ex- 
changing silver  money  or  bullion  at  higher  rates  and  prices 
than  heretofore  stated  by  act  of  Parliament.    Om-  judgment      ^ 
is,  that  had  such  an  act  been  made  by  Massachusetts  when 
they  first  issued  paper  bills,  they  had  to  this  day  been  equal 
in  value  and  credit  to  silver  money.     We  further  think, 
that  passing  it  now,  would  prevent  depreciation  of  bills  and 
bring  them  up  to  what  they  once  were."     They  speak  of 
a  pamphlet  against  their  proceedings  of  last  session,  called 
News  from  Robinson  Crusoe's  Island. 

To  make  the  mode  of  paying  the  rates  more  convenient  March 
for  the  body  of  the  people,  a  majority  of  the  Legislature 
vote  for  another  loan  of  £50,000,  instead  of  the  £100,000, 
for  which  they  had  strongly  contended,  but  to  which  the  ^ 
Chief  Magistrate  could  not  give  his  consent.     The  Gov- 
ernor, contrary  to  his  own  wish,  and  doubtful  whether  it    \ 
was  consistent  with  his  orders  from  Parliament,  consents  to 
this  reduced  emission  for  the  sake  of  complying  with  the 
general  desire.     It  was  to  be  distributed  among  the  towns, 
according  to  their  amount  of  taxes,  who  were  to  elect 
Trustees  for  letting  it  out.     As  a  specimen  of  the  manner 
in  which  such  corporations  apply  the  money,  we  instance 

Salem.     ^  This  place  chose  three    Trustees,  who  let  no    Oct. 

12. 
>  Salem,  Town  Records. 


78  HISTORICAL  ACCOUNT  OF 

]  721,  more  than  £50,  nor  less  than  £10,  to  any  individual,  at  six 
"'''^  per   cent,   on   ample  sdfiiirity.      These   officers   had   one 
sixth  of  the  interest,  and  the  rest  went  towards  disbursing 
town  charges.    «>The  whole  loai.  to  be  redeemed  by  a 

fund  of  taxes  on  polls  and  estates,  both  real  and  personal, 
at  the  ensuing  periods.  One  tenth''part  of  it  was  to  be 
redeemed  May  31,  1726,  and  so  on  for  each  year,  the 
last  being  May  31,  1730,  and  the  notes  so  collected  are 
to  be  consumed. 

^  From  some  queries  of  casuistry  by  Rev.  Mr.  Stoddard 
of  Northampton,  the  ensding  extract  is  made  : — "  Is  not 
the  depreciating  the  bills  of  credit  matter  of  provocation  ? 
It  must  needs  be ;  for  great  wrong  is  done  to  many  per- 
sons, who  have  received  them  according  to  their  denomi- 
nation, and  have  been  forced  to  put  them  off,  as  if  they 
were  of  less  value.  Some  men  are  able  to  help  them- 
selves by  getting  greater  wages  for  their  work,  and  advanc- 
ing the  price  of  what  they  bring  to  the  market ;  but 
others  have  been  great  sufferers  by  this  practice,  and  if 
ever  the  bills  are  called  in,  such  as  are  in  debt,  either  to 
public  or  particular  persons,  will  be  great  losers.  It  may 
be,  some  of  them  will  be  undone  thereby.  The  tempta- 
tion to  the  merchants  was  to  get  the  money  into  their 
own  hands,  that  thereby  they  might  make  returns  to 
England.  They  would  give  30'  in  bills  for  20'  in  silver. 
And  they  may  afford  to  do  it,  that  have  sold  and  do  sell 
their  goods  at  excessive  rates.  They  are  under  no  neces- 
sity to  do  thus,  for  they  have  the  command  of  the  market, 
and  might  buy  the  produce  of  the  country  at  such 
prices,  that  they  might  make  as  profitable  returns  as  they 
now  do." 
1722.  2  While  the  paper  money  was  multiplied,  small  coin  as 
well  as  large,  was  exceedingly  scarce.  For  this  reason, 
an  emission  of  £500  worth  of  I'',  2^,  and  3*^  bills  is 
ordered.  The  form  of  the  first  of  these  bills  was  round, 
of  the  second,  square,  and  of  the  third,  sex  angular. 
"vl.723.  Wearied  with  his  endeavors  to  stem  the  popular  current 
for  the  increase  of  Province  loans,  as  also  with  opposition 


June 
26. 


Jan. 
1. 


>  An  answer  to  some  Tales  of  Con-  ^  Massachusetts     Provincial     Re- 

science,  about  1722.  cords. 


MASSACHUSETTS  CURRENCY. 


79 


on   account  of  his   salary  and  other  subjects,   Governor  1733. 
Shute  embarks  for  England.     On  his  doi)arture,  Lt.  Gov-  ^■^^-'^^ 
ernor  Dumnier  comes  into  like  perplexity.     A  majority  of 
the  Legislature,  over  whom  he  presided,  desirous  to  regu- 
late the  disordered  currency,  mend  a  cog  here  and  tiiere, 
but  entirely  overlook  the  main  spring. 

■^As  South  Carolina  had  been  pointed  to  as  a  beacon  for 
warning  Massachusetts  from  recklessly  indulging  a  passion 
for  paper  money, — so  Massachusetts  is  now  spoken  of  to 
the  people  of  Pennsylvania  for  the  same  preventive. 

^  The  products  of  the  land  and  sea,  which  had  been   Ju'y 
renewedly  current  at  the  Treasury  for  taxes,  now  cease 
to  be  taken  there.     This  suspension  is  again  to  be  tempo- 
rarily interrupted  in  a  few  years,  by  the  scarcity  of  other 
medium  of  exchange. 

There  was  great  debate   in  the  Assembly  about    the  1724. 
emission  of  £30,000.     The  Council  wished  to  have  it   ^^^' 
redeemed  in  three  years,   but  the   House  insisted  on  a 
longer  credit  of  four  years.     The  latter  body  prevail. 

Judge  Sewall,  as  a  member  of  the  Board,  remarks  on 
this  occasion  ; — ^  "  The  diminution  of  the  value  of  the 
bills  of  public  credit,  is  the  cause  of  much  oppression  in 
the  Province.  And  I  dare  not  have  a  hand  in  adding  to 
the  heavy  weight  of  this  oppression,  which  is  already  be- 
come intolerable." 

^  Among  the  professional  classes  of  society,  who  experi-  1725. 
ence  much  loss  and  suffering  from  the  fall  of  the  paper  ^^r^ 
currency,  are  clergymen.  They  having  their  salaries  paid 
in  it  at  par,  are  virtually  wronged  out  of  much  which 
justly  belongs  to  them,  and  is  essential  to  the  comfortable 
support  of  themselves  and  families.  Aware  of  their  equi- 
table claim  for  indemnification,  an  act  is  passed  that  they 
shall  be  obliged  to  take  bills  of  credit  only  at  their  real 
value. 

^That  we  may  judge  of  the  sums  issued  in  Treasury 
notes  or  bills,  the  succeeding  minutes  of  James  Taylor, 
the  Treasurer,  are  adduced. 

'  Proud's  Hist,  of  Pennsylvania.  ■*  Annals  of  Salem. 

2  Mass.  Provincial  Records.  *  Massachusetts  Archives. 

Judge  Sevvall's  Diary. 


80  HISTORICAL  ACCOUNT  OF 

1725.      Received  into  the  Treasury 

from  May  1703  to  May  1714  £194,950  13 

1715  41,555     8 

1717  5,000 

1719  15,000 

1720  2,000 

1722  58,000 

1723  60,500 

1724  20,000 


£397,006 

1 

Burnt, 

194,917 

2  10 

Bills  out, 

£202,088 

18     2 

Burnt  by  Mr.  Taylor,  Treasurer, 

from  May  1707  to  May  1714 

£68,968 

2     6 

1715 

41,429 

11  11 

1716 

17,829 

4 

1717 

11,703 

12     5 

1718 

15,339 

6     6 

1719 

19,522 

15  11 

1720 

3,960 

15  11 

1722 

268 

8     1 

1723 

3,572 

17 

1724 

6,038 

0     7 

1725 

6,284 

8 

£194,917  2  10 

Oct.  ^  The  ensuing  notice  is  sent  to  Lieut.  Governor  Dum- 
mer,  from  the  Duke  of  Newcastle  in  London.  William 
Wood  has  been  granted  Letters  Patent  by  his  Majesty  for 
coining  "  half-pence,  pence,  and  two-pences,  of  the  value 
of  money  of  Great  Britain,  for  the  use  of  his  Majesty's 
dominions  in  America,  which  said  coin  is  to  receive  such 
additional  value  as  shall  be  reasonable  and  agreeable  to 
the  customary  allowance  of  exchange  in  the  several  parts 

'  Massachusetts  Archives — Letters,  vol.  ii. 


MASSACHUSETTS  CURRENCY.  g| 

of  those  his  Majesty's  dominions."     He  desires  Mr.  Wood  1727. 
may  be  assisted  in  the  execntion  of  his  office.  ^eb^ 

^  The  Board  of  Trade  in  London  agree  upon  orders  for  8. 
his  Honor,  William  Dummer,  to  require  the  General  Court 
to  withdraw  from  circulation  the  £100,000  loan  of  1710, 
and  have  it  destroyed  by  the  next  May,  and  that  he  sign 
no  act  for  bills  of  credit  without  his  Majesty's  express  leave 
for  that  purpose. 

2  A  letter  is  forwarded  by  Secretary  Willard,  to  the  May 
Governor  of  Rhode  Island,  desiring,  that,  as  his  Colony  '^'^• 
had  issued  a  Proclamation  for  calling  in  their  bills  of 
credit,  they  would  appoint  an  agent  in  Boston,  to  exchange 
an  abundance  of  such  paper  and  other  notes  of  theirs, 
worn  and  defaced,  which  had  fallen  upon  the  hands  of 
Massachusetts  people. 

^  At  the  next  Election  Mr.  Dummer  lays  the  concerns  of  ju^c 
another  loan  before  the  Court,  as  having  an  important      1- 
bearing  upon  their  views  and  exertions. 

■*  Urged  on  by  the  necessities  and  solicitations  of  their  j„| 
constituents,  the  great  portion  of  the  House  apply  to  him  5. 
for  a  further  loan  of  £50,000.  Aware  that  his  order  from 
the  crown  forbid  this  in  the  naked  form  of  a  loan,  they 
propose  that  it  be  issued  towards  redeeming  the  £100,000. 
He  replies  that  his  instructions  are  imperative  to  decline 
compliance  Avitli  all  such  propositions  until  the  Royal 
pleasure  can  be  known.  He  remarks  that  if  the  propo- 
sition was  couched  in  terms  to  denote  an  emission  for 
recalling  the  £100,000,  he  could  not  object.  He  adds 
his  entire  Avillingness  to  allow  the  annual  emission  of 
Treasury  notes,  to  settle  the  costs  of  Government,  as  had  . 
been  customary.  They  and  the  great  body  of  the  people 
are  exceedingly  loth  that  he  should  be  guided  by  dictates 
of  the  Crown  in  this  respect,  because  they  considered  it  as 
an  important  article  of  their  internal  policy,  which  no 
foreign  power  could  touch  without  a  violation  of  their 
Charter  liberties.     They  were  aware,  that  if  once  allowing 

>  Lt.    Gov.    William    Dummer's  ^  Lt.  Gov.  Dummer's  Speech. 

Speech.  *  Massachusetts    Provincial    Rec-   • 

2  Massachusetts     Aichives  —  Let-       ords. 
ters,  vol.  ii. 

11 


32  HISTORICAL  ACCOUNT  OF 

1727.it,  as  consistent  with  their  Constitutional  rights,  it  would 
'■^-'^^  be  difficult  for  them  to  retract,  and  would  prepare  the  way 
for  unlimited  taxation.  Hence,  they  had  uniformly  met 
it  on  the  threshold,  and  refused  to  give  it  a  welcome. 
Aug.  ^  While  a  larger  part  of  the  Representatives  were  thus 
25.  vigilant,  lest  the  Province  should  be  brought  under  deeper 
subjection  to  the  Tlirone,  they  came  into  collision  with  the 
Council,  as  to  the  duty  and  expediency  of  redeeming  bills 
for  £30,000  issued  in  1723  and  1724.  The  latter  body 
urge  that  "  the  faith  and  honour  of  this  government  is 
strongly  engaged"  for  the  recalling  of  such  a  sum.  The 
former  allow,  that  the  time,  when  it  should  be  taken  out 
of  circulation,  according  to  the  pledge  of  the  Legislature, 
had  arrived;  but  that  the  distressed  condition  of  the 
country  was  a  sufficient  apology  for  a  delay  of  fulfilling 
the  contract,  that  greater  evil  than  good  would  accrue  to 
the  public,  if  the  bills  out  should  be  drawn  in.  Several 
communications  passed  between  the  two  branches  of 
legislation  on  this  subject,  each  adhering  to  their  opinions, 
and  holding  one  another  to  be  in  a  dangerous  error.  The 
same  scene  was  repeatedly  exhibited.  But  an  impartial 
view  of  the  subject  would  suggest,  that  the  Council  had 
the  better  side  of  the  question,  and  that  conformity  with 
principle  rather  than  policy  was  better  then,  and  always 
is,  than  the  contrary.  One  result  of  the  policy  practised 
by  the  House,  honestly,  we  believe,  though  incorrectly, 
was  still  more  to  weaken  confidence  in  the  bills  of  credit. 

Prices  of  articles  paid  for  Provincial  Taxes. 

Oct.        To  show  the  worth  of  money,  as  well  as  to  give  an 
1^-     instance  of  the  renewed  custom  of  accounting  the  produc- 
tions  of  the  Province  as  currency,  so  far  as  to  receive 
them  for  rates  at  the  Treasiuy,  the  subsequent  valuation 
of  them  is  here  given. 

Good  merchantable  beef,  £3  a  barrel ;  do.  pork,  £5  10/. 
Winter  wheat,  8/,  Summer  wheat,  7/,  barley,  6/,  rye, 
6/,    Indian   corn,    4/,    oats,   2/6,    a  bushel.      Flax,    1/4, 

'  Massachusetts  Provincial  Records. 


MASSACHUSETTS  CUllRENCV. 


83 


hemp,  9'^,  bees'  Avax  2/6,  a  pound.  Peas  clear  of  bugs,  9/  1707. 
a  bushel.  Sweet  firkin  butter,  12^',  dry  hides,  6*^,  tanned  -^-^^^ 
leather,  12*^,  a  pound.  Merchantable  dry  cod-fish,  jCl  10/ 
a  quintal.  Mackerel,  £1  10/,  oil,  £2  10/,  a  barrel.  Whale 
bone,  six  feet  long  and  upward,  3/6,  bayberry  wax,  1/4, 
a  pound.  Turpentine  full  bound,  13/,  merchantable  bar 
iron,  48/,  cast  iron  pots  and  kettles,  48/,  a  hundred.  Well 
cured  tobacco,  4*^,  good  tried  tallow,  8*^,  a  pound. 

^  At  this  point  it  may  be  well  to  give  a  scale  of  the  de-    Dec. 
preciation  of  paper  currency,  as  contained  in  an  act  to      ^" 
regulate  its  value,  which  required  that  all  debts  contracted 
in  bills  of  credit  before  and  since  IT  10,  should  be  esti- 
mated in  them,  as  follows  : — 

T,„iv  ,„  „„  J  •       1710  )        Bills  y^ere   worth)       0/     C  for  an  ounce  of 
Before  and  in     ^^^^  J         at  the  rate   of        J       W     J  silver. 

1713^ W^ 

^^^H  9/ 

1715  V / 

1716) 

17175 .    m/ 

1718        11/ 

1^19?  12/ 

17205 ^"^1  - 

1721  ".    :    .   ■.    .'  ■.  't3/'  ■'      '    '     '  '' 

1722         14/  •■     ■ 

1723         15/  .      H 

1724  -V 

1726  ( ^^/ 

1727  ) 

This  was  an  estimation  which  was  most  favorable  to 
the  paper  currency  of  the  Province. 

The    Council,    with    his    Honor,    having    repeatedly  27.33 _ 
pressed  the  recall  of  the  £100,000  loan,  the  date   fixed   Jan. 
for  its  redemption  being  expired  more  than  a  year,  the 
House  consent  to  the  proposition,  though  reluctantly,  be- 
cause they  perceived  their  constituents  opposed  to  it,  and 
because   they  expected,  from  the  course  of  Parliament 

'  Act  of  Massacliusetts. 


84 


HISTORICAL  ACCOUNT  OF 


1723  towards  this  country,  that  the  paper  cmTency  would  be 
"""""^  increasingly  curtailed.  But  as  some  oif-set  for  their  dis- 
appointment in  this  particular,  an  Act  is  passed  for  another 
loan  of  £60,000.  The  heading  for  this  was  more  in 
accordance  with  their  views  and  feelings,  than  with  those 
of  the  other  part  of  the  Legislature.  It  runs  thus : — 
"  Whereas  the  public  bills  of  credit  on  this  Province, 
which  have  for  a  great  length  of  time  happily  served  this 
Government,  both  in  war  and  peace,  and  enabled  the 
inhabitants  thereof  to  pay  their  publick  dues,  are  now 
become  very  scarce,  by  reason  they  are  in  a  great  measure 
already  drawn  in."  This  money  was  issued  to  the  towns 
proportionably  to  their  taxes.  They  are  empowered  to 
let  it  out  at  6  per  cent.,  four  of  which  went  to  the  Prov- 
ince, one  to  the  trustees,  for  their  responsibility  and  ser- 
vice, and  the  other  to  help  pay  town  charges.  A  tax  on 
real  and  personal  property  was  the  fund  for  the  redemp- 
tion of  the  loan,  payable  annually  in  ^sums  of  £12,000 
each,  from  Dec.  31,  1734. 

March      Dr.  William  Douglas  states  the  ensuing  facts  to  Caldwal- 
18  a  & 

■    der  Golden  of  New  York.     '  Our  paper  currency,  by  too 

great  emissions,  has  gradually  lost  its  credit,  so  as  at  present 
16'  is  but  sufficient  to  purchase  an  ounce  of  silver.  The 
bills  of  Massachusetts  in  circulation  amount  to  £314,000, 
besides  those  of  Gonnecticut,  Rhode  Island,  and  New 
Hampshire.' 
Aug.  ^  Mr.  Burnet  having  assumed  the  government  here,  and 
being  urged  by  the  Representatives  to  favor  their  views 
for  plentiful  issues  of  paper  money,  sends  one  of  his  in- 
structions to  them  for  perusal,  and  also  to  the  Gouncil.  It 
runs  thus ;  "  Whereas  Acts  have  been  passed  in  some  of 
our  Plantations  in  America  for  striking  bills  of  credit,  and 
issuing  the  same  in  lieu  of  money,  in  order  to  discharge 
public  debts  and  other  purposes,  from  whence  several 
inconveniences  have  arisen,  it  is,  therefore,  our  will  and 
pleasure,  that  you  do  not  give  your  assent  to,  or  pass  any 

*  Doctor   William   Douglass,  in  a  terminating   1742,   which   disagrees 

letter  to  Caldwalder  Golden,  Esq.  of  with  the  Act. 

New   York,    represents    these  pay-  ^  Massachusetts    Provincial    Rec- 

uients  as  commencing  in  1737,  and  ords. 


20. 


MASSACHUSETTS  CURRENCY.  35 

Act  in  our  aforesaid  Province  of  the  Massachusetts  Bay,  1728. 
under  your  government,  Avhercby  bills  of  credit  may  be  ^^^^^^ 
struck  or  issued  in  lieu  of  money,  without  a  clause  be 
inserted  in  such  Act,  declaring  that  tlie  same  shall  not  take 
elfect  until  the  said  Act  shall  have  been  approved  or  con- 
firmed by  us."  This  was  a  lesson  for  the  popular  branch 
of  Legislation  to  read,  to  which,  though  they  saw  it  with 
their  eyes,  and  heard  it  with  their  ears,  they  gave  no  heart- 
felt respond  of  approbation.  Like  other  expressions  of  Regal 
authority,  which  had  been  repeatedly  laid  before  them,  it 
seems  to  have  made  little  impression  on  their  memory,  or 
which  is  the  truer  of  the  two,  they  would  gladly  have 
forgotten  it,  if  thereby  it  might  have  been  no  longer  im- 
posed on  them,  as  what  they  deemed  an  advance  of  op- 
pression. 

For  the  short  period  Governor  Burnet  lived  here,  being 
some  over  a  year,  he  perceived,  that  unless  he  would  sur- 
render the  prerogative  of  the  Crown  to  forbid  the  loaning 
system  of  the  Assembly,  as  well  as  to  fix  the  salary  of  the 
Chief  Magistrate,  he  must  be  in  an  incessant  turmoil. 

^  With  such  relations  to  each  other,  they  so  disagree,  that  1729. 
he  said  to  the  House,  for  substance,  Gentlemen,  I  have     ^^^^ 
ordered  you  no  pay,  because  you  have  voted  me  no  salary. 
Thus  with  his  hand  on  the  points  of  opposition,  he  would 
have  had  much  to  endure  had  he  survived,  and  longer 
retained  his  office. 

2  So  downward  was  the  tendency  of  Massachusetts 
notes,  that  they  again  become  the  subject  of  remark  in 
another  Province.  James  Logan,  writing  from  Pennsyl- 
vania to  the  Proprietaries,  and  referring  to  their  bills, 
says,  "  I  dare  not  speak  one  word  against  it.  The 
popular  phrenzy  will  never  stop  till  their  credit  will  be  as 
bad  as  they  are  in  New  England,  where  an  ounce  of  silver 
is  worth  20'  of  their  paper." 

^  One  occasion  of  such  a  difi"erence  between  bills  and 
cash,   was  because  the  Factors  here  from  England  had 

'  Massachusetts    Provincial    Rec-  "  Annals  of  Philadelphia, 

ords.  ^  Discourse  on  Colonial  Currency. 


36  HISTORICAL  ACCOUNT  OF 

]  729,  orders  from  their  employers,  to  remit,  for  the  goods  im- 
'^^  ported,  nothing  short  of  silver  or  bills  of  exchange. 

While  the  pecuniary  state  of  the  Province  was  such, 
Mr.  Burnet  is  succeeded  by  Jonathan  Belcher.  Of  this 
gentleman  the  Court  of  St.  James  had  strong  hopes,  that 
he  would  be  able  to  subdue  what  they  accounted  and 
denominated  the  refractory  spirit  of  Massachusetts,  and 
make  a  speedy  close  of  the  paper  currency. 

Accordingly  he    comes   hither  with,  an   injunction  to 
1730.  have  preparatory  measures  adopted  for  effecting  this  object 
**  in  the  course  of  ten  years. 

^  Governor  Belcher  says  in  his  speech  to  the  General 
Dec.   Com-t,  "  I  must  not  dismiss  this  article,  without  recom- 
16.    niending  to  your  thought  and  care,  the  state  of  your  bills 
of  credit,  the  course  and  manner  of  their  being  such  at 
present,  as  makes  them  a  common  delusion  to  mankind." 
The  law  for  compelling  creditors  to  receive  paper,  spe- 
cialties excepted,  however  fallen,  at  par  value,  and  openly 
denounced  in   England,  as  flagrantly  unjust  to  her  mer- 
chants who  traded  with  this  Province,  comes  before  him 
for  reapproval.     At  first,  he  gives  it  his  prompt  veto.     But 

■'J'^Vtired  down  by   Yankee   perseverance,  he  is  induced  to 
April  .  •'  ^  ' 

2.      have  it  prolonged,  at  the  expense  of  being  severely  cen- 
sured in  London. 

Still,  however  pliant  in  this  point,  no  guard  of  the  gol- 
den apples  of  Hesperides  could  have  been  more  vigilant 
and  unyielding  than  he  was,  to  keep  the  injunctions  of 
his  Majesty. 

These,  being  the  16th  and  18th,  restricted  all  issues  of 
Treasury  notes  to  the  bare  liquidation  of  Government 
charges,  and  required  that  not  more  than  £30,000  of  them 
should  be  in  circulation  at  the  same  time,  and  that  they  be 
redeemed  at  the  date  agreed  on.  A  consequence  is,  that 
the  House  retaliate,  in  not  providing  a  sufficient  sum  for 
the  public  chest,  in  the  manner  which  he  could  approve. 
Dec.  The  Representatives  of  Massachusetts  having  peti- 
^'^'    tioned  the  King  to  repeal  the  16th  instruction  to  Governor 

'  Journal  of  House  of  Representatives. 


MASSACHUSETTS  CURRENCY.  37 

Belcher,  as  very  detrimental  to  the  Province,  his  Majesty  1732. 
confirms  a  report  of  his  Council  to  have  the  instruction  ^-^^^^ 
still  continued.  jan. 

^  As  officers  of  courts  of  justice  had  recently  refused  to     20. 
take  their  fees,  except  in  silver,  a  committee  of  the  Repre- 
sentatives report  that  so  scarce  is  specie,  and  so  necessary 
is  it  to  preserve  the  credit  of  bills,  such  a  refusal  must  by 
no  means  be  allowed. 

2 Gov.  Belcher  writes  to   the  Lords  of  Trade,  "If  your  1733. 
Lordships  approve  of  the  Bill  I  now  send  you,  for  emitting    *'""• 
bills  of  credit  on  a  foundation  of  gold  and  silver,  and  that 
I  may  have  his  Majesty's  leave  for  doing  it  in  Massachu-     , 
setts,  I  pray  I  may  also  have  the  same  liberty  of  doing 
it  in  New  Hampshire,  where  they  are  in  great  distress  for 
something  to  pass  in  lieu  of  money,  and  without  speedy 
help  it  will  be  almost  impossible  for  that  little  Province  to 
support  any  trade."  •     ' 

While   the  Treasury  is  unsupplied,  James  Oglethorp,  a 
member  of  Parliament,  a  particular  friend  to  the  interests 
of  New  England,  and  the  founder  of  Georgia,  sends  word 
that  he  is  on  his  wq.y,  from  that  Province,  for  Boston,  to 
take  passage  for  London.     The  Legislature  raise  a  com-  j^ij^g 
mittee  to  give  him  an  honorable  reception  and  entertain-     ^1. 
ment.     In  the  meanwhile,  the  Governor  forwards  a  letter 
to  them,  saying,  that  as  they  had  voted  no  funds  for  any     22. 
extra  expense,  he  should  accommodate  the  worthy  gentle- 
man at  his  own  house,   and  own   charge.     This  was  a 
requital  more  deeply  felt,  than  it  could  be  openly  faulted. 

The  House  having  petitioned  the  King  several  times,  A„g, 
that  the  restrictions  laid  on  their  Governors,  as  to  the  1^- 
raising  of  revenue  for  Province  expenses  and  necessi- 
ties, might  be  rescinded,  they  had  lately  received  a  sharp 
rebuke  from  his  Council  for  so  doing.  These  account  for 
such  restrictions  in  the  succeeding  terms.  "  A  pernicious 
practice  had  prevailed  in  several  Plantations  of  America, 
for  issuing  bills  of  credit  instead  of  money,  to  pay  public 
debts.     Hence  great  inconveniences  arose  in  depreciation 

'Journal  of  House  of  Represen-  ^Massachusetts     Archives  —  Let- 

tatives.  ters,  voL  ii. 


gg  HISTORICAL  ACCOUNT  OF 

1733.  of  bills."     Indeed,   the  conduct  of  our  Legislature,  as  to 
'•^^•''^  pecuniary  matters,  was  viewed  at  the  court  of  England, 
as  a  sort  of  Pandora's  box  to  our  country.     It  was  made  the 
occasion  there  of  changes,  which  were  deprecated  by  the 
most  of  our   fathers.      It   hastened   on  the    explanatory 
Chai'ter  of  1725,  which  confirmed  the  Governor's  right  to 
negative  the  Speaker  of  the   House,  and  curtailed  this 
body  in  other  exercises  of  power.     It  subsequently  helped 
to  throw  the  auditing  and  settling  of  public  accounts  into 
the  hands  of  the  Governor  and  Council,  and  otherwise 
cramped  the  energies  of  the  popular  branch  of  govern- 
ment.    Still,  while  its  unhappy  results,  in  these  and  other 
respects,  political  and  social,  public  and  private,  poured 
over  our  Commonwealth,  hope,  in  the  minds  of  the  Pro- 
vincials, remained  at  its  bottom. 
Oct.        ^  As  by  the  Royal  commands  to  the  chief  magistrate, 
11-    Treasury  notes  had  become  curtailed,  a  number  of  mer- 
chants and  others  of  Boston,  in  order  to  supply  the  defi- 
ciency of  such  a  medium  of  trade,  had  recently  engaged 
in  a  project  of  issuing  paper  to  the  value  of  £110,000. 
Rhode   Island  had  also  ordered  a  large  emission  of  their 
bills,  which,  as  usual,  were  expected  to  have  their  chief 
circulation  in  Massachusetts.     With  these  facts  laid  before 
them,  and  concluding  that  by  such  causes  their  own  bills 
would  proceed  from  bad  to  worse,  the  General  Court  ap- 
point a  committee  to  examine  them,  and  make  report. 
Oct.        ^  Notified  of  such  action.  Governor  Wanton  replies,  that 
2^-    the  Rhode  Island  Assembly  had  enacted,  in  July  last,  to 
issue  £100,000  loan,  at  5  per  cent.,  on  land  security.     He 
adds,  "I  do  assure  the  General  Assembly  of  the  Province, 
we  had  an  especial  regard  for  the  welfare  of  the  public  in 
said  emission.     And  hope"  that  they  "will  take  care  that 
trade  may  not  be   injured  by  a  private   emission   now 
comins  out  without  their  sanction,  as  I  am  informed." 
Noy        3  ^ter  a  hard  contest  between  the  House  and  his  Ex- 
2.  "  cellency,  they  so  far  harmonize,  that  he  consents  to  an 

>  Massachusetts    Provincial    Rec-       in    answer   to    Secretary    Willard's 
ords.  express. 

2  Gov.  "William  Wantons  letter,  ^  Massachusetts    Provincial    Rec- 

ords. 


MASSACHUSETTS  CURRENCY.  gg 

emission  of  £76,500,  in  bills,  for  Provincial  charges.     On  ]7;33. 
this  occasion  he  remai'ks,  "  I  am  glad  you  have,  after  a  -^^^'^^ 
struggle  of  near  three  years,  now  agreed  in  a  bill  to  make 
provision  for  the  payment  of  the  public  debts." 

^  A  letter  of  the  General  Court  to  Francis  Wilks,  their  Nov. 
agent  in  London,  requesting  him  to  petition  for  the  repeal  '^• 
of  the  tax  on  fishermen  here,  as  well  as  on  those  in  the 
merchant  service,  of  6'^  a  month  for  Greenwich  Hospital, 
remarks,  that  their  fish  brings  "  a  very  large  sum  in  silver 
and  gold,  from  Spain,  Portugal,  and  the  Streights,"  which 
goes  to  Great  Britain  for  the  payment  of  goods. 

'^  The  committee  raised  about  the  paper  money  in  circula-  q^ 
tion,  make  their  report,  which  is  accepted  by  both  Houses. 
They  state  that  the  merchants'  notes  emitted  by  Boston 
gentlemen,  should  be  backed  with  greater  security;  and 
that  his  Excellency  be  desired  to  send  out  a  proclamation, 
warning  the  people  to  be  on  their  guard  against  taking  the 
late  bills  of  Rhode  Island.  The  bills  of  the  private  bank, 
just  mentioned,  amounted  to  £110,000,  and  were  redeem- 
able in  ten  years,  with  silver  at  19'  an  ounce,  then  the 
common  rate  of  the  Province  paper.  Though  a  great  and 
imposing  effort  was  made  to  keep  the  Rhode  Island  bills 
out  of  our  market,  yet  they  soon  flowed  in,  and  became 
current. 

2  The  Governor  thinks  it  not  expedient  to  issue  a  proc-  7. 
lamation  against  both  of  these  sorts  of  currency,  though 
he  is  decidedly  opposed  to  them.  He  gives  his  opinion, 
that  the  merchants'  bank  ought  not  to  do  business  with- 
out permission  from  the  Assembly  ;  and  that  such  permis- 
sion should  not  be  allowed  them,  because  falling  within 
the  limits  of  his  prohibitory  order  from  the  Crown,  to 
have  only  £30,000  in  bills  circulating  at  the  same  period, 
^  Still  the  merchants'  notes  were  circulated,  and  accounted 
better  by  33  per  cent,  than  Province  bills. 

These  concurrences  made  a  flush  of  paper  money.     But 

'Massachusetts  Archives — Let-  ^  jyiaggachusetts    Provincial    Rec- 

ters,  vol.  ii.  ords. 

^  Massachusetts  Provincial    Rec-  ''  Letter  to  a  merchant  in  London, 

ords. 

12 


90  HISTORICAL  ACCOUNT  OF 

1733.  the  flood  was  far  from  being  like  that  of  the  Nile,  which 
^"^"""^  enriches  and  blesses  wherever  it  comes. 

While  such  a  change  for  the  worse  is  attracting  the 
anxious  gaze  and  attention  of  friends  to  the  Province, 
Mr.  Belcher,  in  his  speech,  utters  the  succeeding  opinions. 

1734.  ^  "  I  must  observe  to  you  to  what  a  low  ebb  our  bills  of 
^^y   credit  are  reduced,  which  carry  in  the  face  of  them  these 

words — 'in  value  equal  to  money.'  And  yet  16'  in  these 
bills  will  not,  at  this  day,  purchase  5'  lawful  money.  It 
will  then  become  the  wisdom  of  the  Legislature  to  search 
into  this  matter,  and  to  apply  a  speedy  remedy ;  for  next 
to  the  defence  of  the  Province,  I  take  this  to  be  an  affair 
of  the  greatest  consequence.  I  should  also  think  it  pru- 
dent to  look  carefully  into  the  several  loans  of  the  Prov- 
ince, and,  after  so  many  years'  indulgence  to  the  borrowers, 
to  order  them  to  be  paid  in  without  more  delay.  For  a 
sacred  observation  of  the  terms  of  the  several  Acts,  by 
which  the  bills  have  been  issued,  must  have  a  natural 
tendency  to  support  their  credit.  And  I  think  it  would 
be  an  instance  of  the  wisdom  and  justice  of  this  Govern- 
ment, not  to  suffer  an  emission  of  any  sort  of  notes  or  bills 
for  the  future,  but  such  as  will  instantly,  and  at  all  times, 
honestly  and  truly  command  the  value  expressed  in  them. 
I  look  upon  the  land  and  commerce  of  the  country  to  be 
but  one  joint  interest,  and  should  be  always  equally 
encouraged.  And  it  is  with  much  concern  I  mention 
to  you  the  decaying  state  of  the  trade  of  the  Province. 
While  our  importations  are  so  exceeding  as  constantly  to 
leave  us  a  large  balance  in  arrear  to  our  friends  abroad,  it 
is  impossible  we  should  carry  on  a  gainful  trade,  or  have 
among  us  gold  and  silver,  the  only  valuable  medium  of 
commerce.  Happy  would  it  then  be  for  the  Province,  if 
the  Legislature  would  establish  some  large  premiums  to 
encourage  the  cultivation  of  the  lands,  as  on  hemp  and 
other  naval  stores,  and  our  English  grain.  Something  of 
this  kind  may  gradually  bring  the  balance  of  trade  in  our 
own  favour,  which  will  of  course  fix  the  standard  of 
money  among  us." 

'  Governor  Belcher's  Speech. 


MASSACHUSETTS  CURRENCY.  91 

^Governor  Belcher  makes  further  remarks  on  this  sub-  1734. 
ject,  which  he  deemed  of  vital  importance  to  the  commu-  ^^ 
nity.  ''  Of  late,  it  is  most  certainly  apparent  that  emissions  ^2. 
of  bills  of  what  sort  soever,  have  sunk  the  value  of  all 
bills  that  were  extant  before,  more  or  less  in  proportion  to 
the  sums  that  have  been  emitted,  and  a  plain  proof  of  this 
we  have  had  the  last  year  upon  an  emission  of  this  gov- 
ernment, of  about  eighty  thousand  pounds,  and  of  a  much 
greater  sum  by  a  number  of  private  persons,  and  of  slill 
more  by  the  neighboring  Colonies,  which  in  the  course  of 
the  year,  have  sunk  the  value  of  our  Province  bills,  at 
least  a  fifth  part."  This  has  injured  those  of  Great 
Britain  who  trade  here.  "  Yet  the  loss  has  more  heavily 
fallen  upon  such  as  are  the  most  careful  and  industrious 
to  live  within  themselves,  upon  widows  and  orphans,  upon 
the  ministers  of  religion,  and  upon  such  as  spend  their 
time  to  serve  the  publick.".  They  who  live  by  credit  are 
most  benefited  by  such  a  state  of  currency.  The  bills 
of  the  Private  Bank  or  merchants'  notes,  instead  of  pre- 
venting a  further  depreciation  of  Province  bills,  as  it  was 
confidently  said,  have  had  a  contrary  effect. 

Such  compends  of  sound  political  economy  had  been 
often  repeated,  from  the  Chair  of  State,  in  the  ears  of  the 
two  Houses.  A  page  from  Davenant,  or  Steward,  or 
Smith,  could  ofi"er  no  better  advice  for  a  country  situated 
as  ours  was. 

In  accordance  with  the  suggestion  of  Mr.  Belcher,  the 
General  Court  consider  the  means  for  suppressing  the 
merchants'  notes,  but  as  they  could  not  agree,  the  subject 
is  deferred. 

Actuated  by  the  prevalent  mania,  against  which  wise 
precautions  had  been  given,  a  company  in  New  Hamp- 
shire concluded  to  follow  the  example  set  by  the  associa- 
tion of  our  metropolis — who  had  issued  notes  on  their 
OWL  responsibility — but  not  to  imitate  their  judicious 
provisions  to  hinder  loss  to  the  public.  ~  Hence  our  Leg-  1735. 
islature  pass  a  law  against  the  circulation  of  their  bills  on  j'g" 
a  penalty  of  heavy  fine.     A  part  of  the  introduction  to 

1  Governor  Belcher's  Speech.  *  Massachusetts  Acts. 


92 


HISTORICAL  ACCOUNT  OF 


1735.  ^^^^  Statute  runs  thus: — Whereas  sundry  persons  of  New 
"^"''^^  Hampshire,  have  adopted  measures  the  past  year  to  issue 
"  promissory  notes  of  a  most  uncertain  and  sinking  value, 
as  they  are  payable  in  New  Hampshire,  Massachusetts, 
Connecticut,  and  Rhode  Island  bills,  or  in  silver,  gold  or 
hemp,  at  the  unknown  price  they  may  be  at  in  Portsmouth, 
in  NcAV  Hampshire,  Anno  1747,  whereby  his  Majesty's 
good  subjects  will  be  great  sufferers,  should  they  part 
with  their  goods  and  substance  for  them  or  accept  of  them 
in  payment."  This  was  a  banking  speculation,  which 
promised  much  advantage  to  its  promoters,  but  very  little 
to  the  public.  The  larger  amount  of  its  paper,  like  all 
such  currency  of  that  day,  in  New  England,  reached 
Boston — the  great  mart  for  the  northern  Colonies.  But 
placed  under  the  ban  of  the  law,  its  market  was  spoiled 
for  this  Province. 

June        1  While  this  money  was  thus  driven  from  circulation, 

20 
*  the  bills  of  Massachusetts  are  so  scarce,  that  the  inhabi- 
tants are  permitted  to  pay  their  taxes  in  hemp,  flax  and 
bar-iron.  In  this  manner,  when  necessity  was  laid  on  the 
people,  they  had  partial  and  occasional  returns  to  the 
ancient  mode  of  satisfying  demands  of  the  public  Trea- 
sury upon  them. 
1737.  ^Perceiving  that  with  all  their  vigilance  and  exertions, 
?  they  could  not  restore  the  credit  of  their  notes,  the  Gen- 
eral Court  resolve  to  have  others  made,  differently  ex- 
pressed. This  they  do  in  an  emission  of  £  18,000  in  bills 
of  the  current  form,  and  of  £9,000  in  a  different  form. 
The  first  sum  was  to  be  re-called  in  a  year,  and  the  last 
in  1742.  As  a  sinking  fund  for  both  of  these  amounts, 
the  people  are  still  allowed  to  pay  their  taxes  in  hemp,  at 
4*^  and  flax  at  6"^  to  the  Treasurer,  or  money,  both  hard 
and  paper,  if  they  could.  As  the  conditions  of  the  £9,000 
emission,  differ  from  those  in  preceding  bills  of  credit,  it 
causes  them  to  be  denominated  new  tenor  and  the  others 
old  tenor.  The  succeeding  form  was  adopted  for  the  new 
tenor : 

'  Massachusetts  Provincial  Records.  ^  General  Court  Records. 


xMASSACHUSETTS  CURREiNCY.  93 

1737. 
TWENTY    SHILLINGS.  TWENTY    SHILLINGS.  ~ — '"^ 

This  Bill  0/ TWENTY  SHILLINGS  due  froiii  the  Province  of 
the  Massachusetts  Bay  in  New  England,  to  the  possessor 
thereof,  shall  be  in  value  equal  to  three  ounces  of  coined 
silver,  Troy  weiglit,  of  sterling  alloy,  or  gold  coin  at  the 
rate  of  four  pounds  eighteen  sJiillings  per  ounce;  and 
shall  be  accordingly  accepted  by  the  Treasurer  and  re- 
ceivers subordinate  to  him  in  all  payments  (the  duties  of 
Impoi't  and  Tannage  of  shipping  and  incomes  of  the 
Light  House  only  excepted,)  and  for  any  Stock  at  any 
time  in  the  Treasury. 

Boston,  By  order  of 

the  Great  and  General  Court  or  Assembly. 

Twenty  Sldllings.  Twenty  Shillings. 


] 


Committee. 


A  reason  why  these  notes  were  not  to  be  received  for 
the  excepted  duties,  was  because  such  duties  were  ordered 
to  be  paid  in  hard  money,  which  was  to  redeem  the  notes. 

^  As  the  act  for  such  bills  limited  the  preceding  ones  to 
the  payment  of  like  taxes,  though  when  first  ordered,  they 
Avere  to  be  taken  for  all  taxes,  merchants  loudly  com- 
plained, that  this  was  a  breach  of  public  faith,  was  one 
act's  destroying  another.  Dissatisfaction  of  this  kind 
tended  to  injure  both  sorts  of  bills.  Though  government 
set  the  new  tenor  at  one  for  three  of  the  old,  yet  the 
people  passed  them  at  one  for  four. 

As  a  specimen  of  the  Protean  appearances,  which  were 
assumed  by  knavery  with  regard  to  New  England  notes, 
we  copy  the  heading  of  an  act  against  such  iniquity  : — 
2  "  Whereas  by  the  tearing  of  the  bills  of  credit  on  this 
Province  and  on  the  neighbouring  governments  into  halves 
and  quarters,  and  then  passing  the  same  so  torn  and 
defaced,  many  frauds  have  been  committed  by  taking  and 
joining  bills  of  a  lower  denomination  to  those  of  a  higher 

'  Letters  from  Boston.  ^  Massachusetts  Provincial  Records. 


94  HISTORICAL  ACCOUNT  OF 

1737.  denomination,  and  so  uttering  and  passing  the  same;  and 
"  '^^  likewise  parts  of  false  and  comiterfeit  bills  in  parts  sepa- 
rate, or  joined  to  parts  of  true  bills,  and  thereby  many  of 
his  Majesty's  good  subjects  of  this  Province  have  suffered 
considerable  loss  and  damage  and  are  likely  to  sufler 
more."  Then  follows  a  heavy  penalty  for  such  offenders, 
and  no  persons  should  receive  any  payment  from  the 
Treasurer  for  a  torn  bill,  unless  they  took  oath  that  it  was 
so  marred  while  in  their  own  possession. 
Dec.  ^  Governor  Belcher  observes  that  the  issuing  of  new 
tenor  bills  has  had  a  good  effect  in  promoting  public 
credit. 

The  General  Court  renew  their  endeavors  to  guard  the 
community  against  the  influx  of  unsafe  paper.  On  this 
1739.  head,  their  language  runs  thus  : — ^  '-  Whereas  the  emission 
Jan.  of  great  quantities  of  bills  of  public  credit  without  certain 
provision  for  their  redemption  by  lawful  money,  in  con- 
venient time,  hath  already  stript  us  of  all  our  money  and 
brought  them  into  contempt  to  the  great  scandal  of  the 
government ;  and  for  the  remedy  thereof,  this  Province 
hath  fixed  the  value  of  their  bills  in  lawful  money  and 
the  time  of  their  redemption  in  1742.  Yet  the  neighbour- 
ing Governments  whose  bills  have  been  received  by  the 
inhabitants  of  this  Province  promiscuously  with  our  own, 
have  taken  no  care  to  fix  any  certain  value  on  theirs,  and 
by  that  means,  our  good  intention  may  be  frustrated  unless 
special  provision  in  this  can  be  made."  With  such  rea- 
sons before  them,  both  Houses  pass  a  bill  to  be  enacted, 
that  no  paper  money  of  other  Provinces  shall  be  taken  in 
Massacliu setts,  except  redeemable  by  lawful  money,  on 
good  security,  in  ten  years  from  their  first  being  issued,  on 
fine  of  £10  for  every  such  note  paid  or  received.  This 
bill  is  sanctioned  by  the  Governor. 
13.  ^  The  Assembly  assure  the  Governor,  that  his  purpose  to 
have  all  their  bills  re-called  in  a  year  or  two,  is  impracti- 
cable, and  that  if  attem^ited,  would  accumulate  the  distress 
already  endm-ed  by  the  inhabitants. 
16.        He  replies,  in  reference  to  an  emission  of  bills,  which 

1  Journal  of  the  House.  -  General  Court  Records. 


MASSACHUSETTS  CURRENCY.  95 

they  had  urged  more  than  a  year  before  : — "I  will  employ  1739. 
my  best  offices,  consistent  with  my  duty  to   the   King,  ~7ii^ 
that  his  Majesty's  Royal  leave  may  be  obtained  lor  giving     17. 
my  consent  to  a  bill  of  this  nature."     Thus  encouraged,     23. 
both  Houses  designate  a  Committee  to  urge  their  agent  in 
London  to  obtain  such  permission  from  the  Crown. 

^  The  letter  of  this  Committee  to  Francis  Wilks,  states 
that  it  is  the  desire  of  his  Excellency  as  well  as  of  the 
other  branches  of  our  government,  that  he  may  have 
leave  from  the  throne  to  sign  an  act  for  the  emission  of 
£60,000  in  bills  for  redeeming  those  due  in  1742.  They 
relate,  that  Massachusetts  had  recently  made  a  law  against 
the  bills  of  adjacent  Colonies,  unless  payable  in  specie, 
and  that  her  paper  could  not  sustain  its  credit  without 
such  a  regulation.  .  . 

2  The  aa-ent  for  Massachusetts  writes,  that  the  Lord's  March 
Commissioners  for  Trade  strongly  object  to  an  issue  of  the 
£60,000,  while  it  is  allowed  here,  that  debts,  payable  in 
specie,   may  be  discharged   with  such  paper.      He  also    jyjay 
relates,  that   in   an  interview  with  the  President  of  the     19- 
Lords  of  Trade,  he  mentioned  how  unequal  it  was  for  the 
Governor  of  Massachusetts  to  be  limited  in  giving  sanction 
to  the  issues  of  paper  money,  while  the  Chief  Magistrates 
of  other  Colonies  are   left  unincumbered  in  this  respect. 
He  further  stated  to  the   President,  that  notwithstanding 
the  law  of  Massachusetts  against  the  currency  of  notes 
emitted  by  the  adjacent  governments,  yet  our  people  were 
under  a  necessity  of  taking  and  paying  them,  because  om: 
own  bills  were  scarce. 

While  exerting  themselves  to  enlarge  their  medium  of 
exchange,  they  pass  a  law  to  be  enacted  for  the  relief  of 
debtors.  This  requires  that  every  creditor  shall  receive 
the  bills  of  his  own  government  for  demands,  if  such 
bills  were  issued  before  March  25,  1738. 

Supposing  the   House  unduly  inclined   to  regard  the    . 
future  finances  of  the  Province  more  under  the  emblem 
of    a   cornucopia   than    otherwise,   the    Chief    Magistrate 
reminds  them  of  what  they  had  reason  to  anticipate  from 

'  Mass.  Archives — Letters,  vol.  iii.      ^  Mass.  Archives — Letters,  vol.  iii. 


96  HISTORICAL  ACCOUNT  OF 

1739  their  present  and  past  experience.  ^  He  states  to  them 
-^^•^^^  that  their  loans  to  1727  were  £260,000,  and  that  a  quarter 
of  it  was  still  unredeemed  and  that  a  part  of  this  should 
have  been  called  in  twenty  years  ago,  and  that  their  old 
bills  had  fallen  two  thirds  of  their  first  value.  Such  plain 
talk  brings  a  reply  from  them  which  does  not  give  so 
sombre  a  hue  to  their  lack  of  punctuality  in  managing  the 
public  monies.  It  also  induces  them  to  send  a  committee 
and  ask  an  explanation  of  him  for  some  other  remarks, 
but  he  declines  to  see  them. 
Oct.  2  jj^g  Excellency  sends  a  report,  made  by  the  Lords  of 
Trade — the  preceding  April  1 1 — to  the  Council,  concerning 
the  £60,000  emission  for  which  the  House  were  anxiously 
desirous,  as  a  means  of  easing  the  heavy  burden,  that 
must  come  on  the  people  in  paying  rates  to  redeem  the 
bills  of  credit.  This  report,  however,  proposed  conditions 
with  which  the  General  Court  are  unwilling  to  comply. 
1740.  ^Knowing  that  coin  had  been  mostly  driven  from  the 
country  by  the  unsuccessful  management  of  the  paper 
currency,  and  that  this  was  soon  to  be  drawn  in,  Thomas 
Hutchinson — afterwards  Governor — as  a  leading  member 
of  the  House,  brings  forward  a  project  to  meet  so  un- 
pleasant an  exigency.  It  is,  to  hire  220,000  ounces  of 
silver  or  gold  equivalent,  for  ten  years  at  four  per  cent,  in 
England,  on  the  credit  of  the  Province.  But  it  is  not 
successful,  as  a  subsequent  and  similar  one  of  his  proved 
to  be. 

As  a  partial  relief  to  the  dark  forebodings  of  the  public 
mind,  if  no  increase  to  the  medium  should  be  allowed  by 
the  Executive,  he  signs  an  act  for  an  emission  of  £160,000 
in  old  tenor  bills,  equal  to  £35,333  6'  8'^,  payable  December 
31,  1742-3-4.  The  notes  for  this  emission  received  the 
name  of  new  tenor,  which  made  the  preceding  series,  that 
had  been  similarly  denominated,  called  middle  tenor. 
19.  ^  In  continuance  of  the  controversy  between  the  Repre- 
sentatives and  the  Governor,  he  repeats  his  account  of  the 
Province  arrearages.     He  says,  that  there  are  £210,000  in 

>  Mass.  Provincial  Records.  ^  Mass.  Archives — Pecu.,  vol.  ii. 

2  Mass.  Provincial  Records.  *  Mass.  Provincial  Records. 


March 
14 


MASSACHUSETTS  CURRENCY.  97 

bills  now  circulating,  £40,000  are  on  loan,  and  the  rest  1740. 
£170,000,  former  Assemblies  have  promised  shall  be  col-  ^^^^'^ 
lected  into   the   Treasury,  by  a  tax  in   the  several  years 
specified,  by  1742,  and  that  this  will  be  a  heavy  burden, 
especially  as  no  provision  is  made  to  supply  the  place  of 
paper  currency.     Such  being  the  pecuniary  condition  and 
prospect  of  the  Province,  several  projects  are  advanced  by 
companies  to  supply  the  deficiency  of  money.     The  peti- 
tions of  these  associations,  being   laid  before  the  Legisla- 
ture, and  assigned  to  a  Committee  for  consideration,  are 
reported  on.     One  of  them  was  John  Colnian  and  three 
hundred  and  ninety-five  others,  for  £150,000,  to  be  lent 
in  notes  on  land  security,  and  payable  in  tv\renty  years  by 
vai-ious  articles  of  merchandize.     It  was  in  some  degree 
like  the  scheme  of  the  noted,  but   mistaken  John  Law  of 
Scotland.      Another  was    Edward    Hutchinson   and   one 
hundred  and  six  partners,  for  £120,000,  redeemable  in 
fifteen  years,  with  silver  at  20*  an  ounce,  or  gold  pro  rata. 
^  The  latter  was  upon  a  plan  similar  to  one  before  men- 
tioned, and  its  bills  were  denominated  merchants'  notes. 
It  was  promoted  in  order  to  put  down  the  other.     Though 
the  gentlemen  appointed  to  consider  them  had  less  objec- 
tion to  the  Specie  bank  than  to  the  Land,  or  as  frequently 
called.  Manufactory  Bank,  they  give  an  opinion,  that  both 
are  inexpedient.     ^  In  the  Legislature,  there  is  a  diversity  March 
of  opinion,  as  to  these  companies.     ^  The  Council  express     ^^• 
their  wish  that  the   Land  Bank  may  be  forthwith  disan- 
nulled, but  that  the  silver  scheme,  so  called,  be  put  over 
to  the  coming  session.     The   Representatives,  looking  on 
the   Land  Bank  as  designed  for  people  of  moderate  pro- 
perty as  Well  as  for  the  rich,  manifest   their  desire  that 
both  suspend  operations  till  the  next  Assembly,  and  then 
be  considered  as  to  their  respective  claims.     This  was  the 
motion  agreed  on,  and  thus  the  petitioners  earnestly  looked 
for  a  hearing. 

■^The  Assembly  enact  that  £4  in  bills  of  the  old  tenor  ^prjj 
and  26/8  of  the  new,  otherwise  called  middle,  shall  be     1<3. 

*  Letter  to  a  Merchant  in  London.  '  Mass.  Archives — Pecu.,  vol.  ii. 

'  Mass.  Provincial  Records.  *  Mass.  Provincial  Records. 

13 


98 


HISTORICAL  ACCOUNT  OF 


J 74  0.  received  in  all  payments  equal  to  20'  of  the  last  form  and 
"^""^  tenor,  and  so  pro  rata  for  a  greater  or  less  sum. 

^  It  appears  that  there  were  at  this  time  more  plans  for 
banks  than  the  two  just  described.     A  close  and  correct 
observer  of  the  financial  concerns  of  the  country,  as  they 
were  in  that  period,  wrote  to  a  correspondent.     His  re- 
marks substantially  follow  : — There  are  many  schemes  in 
Boston  for  emitting  enormous   quantities  of  paper   cur- 
rency ;  one,  for  counteracting  Rhode  Island  bills,  to  issue 
on  the  responsibility  of   individuals  £500,000  in  notes 
without  fmid  or  period.     In  this  connection,  he  states  that 
the  emissions  and  reemissions  of  Massachusetts  bills,  from 
1702  to  1740,  amounted  to  £1,132,500  on  funds  of  taxes, 
and   £310,000  on  loans.     Of  these   sums   £230,000  ai-e 
still  outstanding,  and,  if  public  faith  be  better  kept,  such 
an  amount  will  be  cancelled  by  1742.     He  also  states, 
that  the  ordinary  charges  of  the  Government  are  £40,000 
of  the  paper  currency  at  450  per  cent,  advance,  or  £5 J 
of  it  for  £1  sterling.     He  describes  the  unequal  necessities, 
to  which  several  classes  of  society  are  reduced,  in  conse- 
quence of  the  fall  in  Treasury  notes.     The  carpenter  gets 
,  /    12'  a  day,  equal  only  to  3/4,  even  if  silver  be  calculated 
*"      at  8'  an  ounce.     He   is  also  obliged  to  take  half  of  his 
labor   in   shop   notes,   payable    in  goods  at  25  per  cent, 
advance.     Such  notes  began  to  appear  with  the  bills  of  the 
Province,   and  they  are  a  great  grievance  to  tradesmen. 
The  clergy  experience  similar  diminution  in  their  means  of 
subsistence.     Widows  and  orphans  are  great  sufferers  in 
their  property.     Charity  funds  are  greatly  reduced  in  their 
May   real  income.     ^  Rev.  William  Cooper  in  speaking  on  this 
subject,  thus  describes  it : — "  An  empty  treasury,  a  de- 
fenceless country  and  embarrassed  trade  are  indeed  melan- 
choly things." 

Leaving  this  dark  picture,  we  resume  the  story  of  the 
two  banks  before  the  Assembly.  Of  these,  the  Land 
Bank  is  particularly  obnoxious  to  the  Governor.  He 
appears  resolved,  that  if  necessary,  he  will  put  forth  his 

>  Discourse   concerning   tiie  Cur-  ^  Rev.  William  Cooper's  Election 

rencies  of  the  British  Plantations  in      Sermon. 
America. 


MASSACHUSETTS  CURRENCY. 


99 


utmost  power  to  crush  it  in  the  bud.  His  feelings  in  this  1740. 
matter  were  not  pecuUar  to  himself.  They  crossed  the  — '' — 
Atlantic  and  utterance  is  given  to  them  in  the  capital  of 
Great  Britain.  ^  They  are  embodied  in  a  memorial,  signed  June 
by  merchants  there  and  others,  and  presented  to  our 
Assembly.  Still,  with  this  array  of  discouragements,  they 
issue  their  notes.  The  Specie  Paying  Bank,  securing  July 
more  extensive  confidence,  and  viewed  with  less  severity  of  ^^' 
suspicion  than  the  Land  Bank,  does  no  less  than  its  rival. 
In  reference  to  these  associations,  Mr.  Belcher  issues  the 
succeeding  Proclamation : — '^  '•'  Whereas  a  scheme  for  emit- 
ting bills  or  notes  by  John  Colman,  Esq.  and  others,  was 
laid  before  the  General  Court,  in  their  session  held  the 
5th  of  December,  1739,  and  by  a  report  of  a  Committee 
appointed  by  said  Court,  was  represented,  if  carried  on,  to 
have  a  great  tendency  to  endamage  his  ^Majesty's  good 
subjects  as  to  their  properties ;  and  whereas  application  has 
been  very  lately  made  to  me  and  his  Majesty's  Council,  by 
a  great  number  of  men  of  the  most  considerable  estates  * 
and  business,  praying  that  some  proper  method  may  be 
taken  to  prevent  the  inhabitants  of  this  Province  being 
imposed  upon  by  the  said  scheme ;  and  it  being  very 
apparent  that  these  bills  or  notes  promise  nothing  of  any 
determinate  value,  and  cannot  have  any  general,  certain  or 
established  credit ;  wherefore,  I  have  thought  fit.  by  and 
with  the  advice  of  his  Majesty's  Council,  to  issue  this 
Proclamation,  hereby  giving  notice  and  warning  to  all  his 
Majesty's  good  subjects  of  the  danger  they  are  in,  and 
cautioning  them  against  receiving  or  passing  the  said 
notes,  as  tending  to  defraud  men  of  their  substance,  and 
to  distiurb  the  peace  and  good  order  of  the  people,  and  to 
give  great  interruption  and  bring  much  confusion  into 
their  trade  and  business."  This  language  was  the  genuine 
expression  of  his  Excellency's  heart,  uttered  to  a  commu- 
nity under  the  influence  of  strong  and  conflicting  excite- 
ments. Among  the  deep  and  tm-bid  springs  of  calamity 
breaking  forth  in  the  Province,  was  the  exacting  of  long 

*  Massachusetts    Archives — Pecu-  "  Massachusetts   Archives — Pecu- 

niary, vol.  iii.  niary,  vol.  iii. 


100 


HISTORICAL  ACCOUNT  OF 


7  40.  deferred  payment  for  the  treasury  loans.     Much  h'tigation 

■  "^  and  great  loss  accrued  to  many,  who  had  mortgaged  their 
estates  for  such  debts. 

July  Understanding  that  his  permission  for  a  late  issue  of 
notes  was  censured  in  Parliament,  Governor  Belcher  ^  writes 
to  Mr.  Partridge,  an  agent  for  our  Province  in  London : — 
"I  wonder  Mr.  Sandys  or  any  member  of  the  Honorable, 
the  House  of  Commons,  should  think  it  a  fault  in  me  to 
give  my  assent  to  a  bill  for  more  than  £30,000.  The 
sense  of  such  instructions  is,  that  I  am  to  allow  no  greater 
emission  than  what  will  pay  the  expenses  of  Government. 
My  consent  was  to  £80,000  old  tenor,  which  is  only 
equal  to  £26,633  13  4  of  new  tenor,  which  is  not  so 
much  as  my  privilege  allows." 

Oct.  ^  Of  the  bills  which  had  been  issued  by  the  Province, 
and  to  which  much  of  the  prevailing  distrust  and  distress 
was  imputed,  £143,952  19  5  are  still  passing.  This 
amount  had  so  fallen  in  value,  that  it  is  estimated  at 
£27,790  11  10  sterling,  at  400  per  cent,  advance. 

Nov.  ^  Mr.  Belcher  being  assured  that  part  of  the  military 
^-  corps  encourage  the  circulation  of  the  Land  Bank  paper, 
publishes  a  Proclamation  to  suppress  such  an  example,  as 
he  judged,  against  the  executive  authorities.  His  words 
are — "  I  hereby  warn  all  commissioned  officers  in  the 
militia  from  signing  or  giving  any  countenance  to  the 
passing  of  the  said  notes  of  hand,  directly  or  indirectly. 
And  as  I  apprehend,  that  if  these  should  obtain  a  cur- 
rency, it  will  reflect  great  dishonor  on  his  Majesty's  gov- 
ernment here,  and  be  very  detrimental  to  the  public 
interests  of  this  Province  and  people,  I  do  hereby  declare 
my  firm  resolution,  that  if  after  this  publick  notice  given, 
any  of  the  military  officers  of  this  Province  persist  in 
being  any  way  concerned  in  or  giving  any  encouragement 
whatsoever  to  the  passing  of  the  said  notes  of  hand,  and 
full  proof  be  made  thereof  to  my  satisfaction,  I  will  imme- 
diately dismiss  them  from  their  said  offices."  In  no  few 
instances  was  this  promise  kept,  as  the  occasions  arose. 

'  Gov.  Belcher's  MS.  Correspondence. 
*  Massaclinsetts    Archives— Pecu-  ^  Massachusetts   Archives — Pecu- 

niary, vol.  iii.  niary,  vol.  iii. 


MASSACHUSETTS  t;URIlENCy  JQl 

'  Civil  as  well  as  military  individuals  are  compelled  to  1740. 
bow  before  the  storm.  As  a  sample  of  their  communica- 
tions with  the  Governor,  the  following  is  adduced  : — "  May 
it  please  your  Excellency.  Inasmuch  as  your  Excellency's 
Proclamation  of  the  5th  current,  the  holding  of  a  commis- 
sion under  your  Excellency  is  made  inconsistent  with  the 
prosecuting  the  manufactory  scheme,  in  which  we  are 
concerned,  and  whereon,  in  our  humble  opinions,  the 
interest  of  our  native  country  so  much  depends  as  to 
require  the  utmost  of  our  endeavours  to  promote  the  same. 
Therefore,  as  with  a  grateful  sense  of  your  Excellency's 
favour  we  received  our  commissions  and  trusts,  so  with 
the  same  sense  for  your  so  long  continuing  us  therein, 
we  now,  with  your  Excellency's  leave,  resign  these  trusts, 
being  concerned,  that  our  being  out  of  town  deprived  us 
of  the  opportunity  of  accompanying  those  gentlemen  who 
have  this  day  resigned  before  us.  We  are  your  Excel- 
lency's dutiful  and  humble  servants, 

"  Samuel  Adams.^ 
John  Choate." 


22. 


Doctor  Robert  Hale  of  Beverly,  holding  a  similar  trust 
with  these  two  gentlemen,  resigns  for  the  same  cause. 

2  While  these  changes  are  occurring,  the  Governor,  with 
the  eye  of  suspicion  upon  the  track  of  the  two  banks, 
reminds  the  Assembly,  that  the  notes  of  these  companies 
are  spreading  among  the  inhabitants.  He  and  the  Council 
require  the  stockholders  to  give  bonds,  so  that  the  public 
shall  not  be  injured  by  such  currency.  He  informs  the 
Representatives,  that,  as  for  the  Land  scheme,  the  King 
and  Parliament  had  been  petitioned  for  its  immediate  sup- 
pression. He  proposes  to  them  that  they  pass  a  law  for  a 
like  end.  But  the  greater  part  of  them  being  actuated  by 
their  own  views  as  well  as  by  the  popular  wish,  take  no 
step  to  arrest  the  operations  of  the  bank,  but  they  rather 

encourage  them.  _, 

°  .  Dec. 

'^The  three  justices,  whose  resignation   is   previously     4. 

'  Massachusetts    Arcliives — Pecu-       father   to   the    patriot.     Mr.  Choate 
niary,  vol.  iii.  belonged  to  Ipswich. 

"  Mr.  Adams  was  of  Boston,  and  •'  Journal  of  the  House. 

■*  Massachusetts  Provincial  Records. 


102 


HJPfORTCAL  ACCOUNT  OF 


J 740.  Stated,    with    William    Stoddard   and    Samuel   Watts   of 

— '^^  Boston,   sustaining  like  offices,    have    their   commissions 

nullified  by  the   Governor  and  Council,  for  favoring  such 

an  association.     Other  justices  are  made   to  taste  of  the 

like  severity  on  the  same  account. 

^  As  Robert  Hale  of  Beverly — a  director  of  the  Land  or 
Manufactures  Bank — had  presented  a  plan  of  this  associa- 
tion, so  that  it  might  be  recorded  in  the  Secretary's  office, 
the  Council  vote,  that,  after  their  expressed  disapprobation 
of  the  company  as  promoting  fraud,  it  is  an  indignity  to 
their  body  for  such  a  request  to  be  made,  and  they  direct 
the  Secretary  to  return  the  document. 

As  referring  to  this  Association,  which  for  a  protracted 
period  received  a  large  share  of  public  attention,  the  sub- 
sequent plan,  on  which  it  was  formed,  is  given.  Though 
necessarily  occupying  more  pages  than  brevity  would 
require,  yet  the  perusal  of  it  will  furnish  us  with  ideas, 
not  elsewhere  to  be  obtained,  of  the  manner  in  which 
banking  was  conducted  a  century  past.  Like  Sybil  leaves 
of  antiquity,  its  worth  is  enhanced  by  the  fewness  of  its 
copies  and  by  the  greatness  of  its  age. 

"  Province  of  Massachusetts  Bay  m  New  England. 

"In  order  to  Redress  the  distressing  Circumstances, 
which  the  Trade  of  this  Province  labors  under  for  want 
of  a  Medium,  other  Methods  having  failed,  it  is  proposed 
to  set  up  a  Bank  on  Land  Security,  no  Person  to  be 
admitted  but  such  as  dwell  in  this  Province,  and  hath  a 
Real  Estate  therein. 

"  L  The  Stock  to  be  one  Hundred  and  fifty  Thousand 
Pounds  Lawful  Money ;  no  Man  to  Subscribe  more  than 
Two  Thousand  pounds,  and  none  less  than  ojie  hundred 
pounds ;  the  Subscriptions  not  to  be  binding,  unless  one 
Hundred  Thousand  Pounds  be  subscribed,  each  Subscriber 
for  one  hundred  Pounds  to  have  one  Vote,  Five  hundred 
pounds  two  Votes,  One  Thousand  Pounds  three  Votes, 
Two  Thousand  Pounds  four  Votes,  and  no  person  to  have 
above  four  Votes. 

'  Massachusetts  Provincial  Records. 


MASSACHUSETTS  CURRENCY. 


J  03 


"II.  Each^ Subscriber  shall  pay  into  the  hands  of  the  174 q 
Committee Jiiji'ty  Shillings  Lawful  Money  for  one  Thou-  — '^ 
sand  Pounds,  and  so  in  Proportion  for  a  greater  or  lesser 
Sum,  toward  the  Charge  of  bringing  forward  the  affair. 

''  III.  Each  Subscriber  shall  make  over  an  Estate  in 
Lands  to  the,  satisfaction  of  the  Directors,  and  shcdl  pay 
in  three  per  cent,  per  Annum  Interest  for  the  same  in  any 
of  the  following  Manufactures,  being  the  produce  of  this 
Province,  viz.  Hemp,  Flax,  Cordage,  Bar  Iron,  Cast  Iron, 
Linnens,  Sheep's  Wools,  Copper,  Tanned  Leather,  Flax 
Seed,  Bees- Wax,  Bayberry-Wax,  Sail  Cloth,  or  Canvas, 
Nails,  Tallow,  Lumber,  or  Cord  Wood,  or  Logwood 
though  from  New  Spain ;  whoever  pays  in  any  of  them, 
shall  deliver  them  to  the  Directors  or  such  as  they  shall 
appoint,  at  such  prices  as  the  Directors  shall  from  time  to 
time  regulate,  or  pay  in  the  same  in  the  Company's  Bills. 

"IV.  Every  Subscriber  shall  pay  amiually  five  per  cent, 
as  part  of  the  principal  untill  the  whole  is  paid,  under  the 
same  regulations,  and  in  the  same  manner,  as  in  the  fore- 
going Article  is  expressed. 

"  V.  There  shall  be  twelve  Directors  and  a  Treasurer, 
chosen  on  such  allowances  as  shall  be  thought  proper, 
who  shall  appoint  Clerks  and  other  attendants  as  they  shall 
find  necessary,  and  agree  with  them  for  their  Salaries  ; 
and  as  there  may  be  occasion,  may  dismiss  them  and 
choose  others  ;  they  shall  also  appoint  persons  to  value 
the  Lands  taken  for  secm-ities,  who  shall  be  paid  by  the 
mortgager.  All  the  said  officers  to  be  under  oaths,  and 
give  security  for  the  faithful  discharge  of  their  Trust. 
The  appraisers  to  be  mider  oath. 

"  VI.  No  person  shall  be  capable. of  being  a  Director  or 
Treasurer,  who  signs  less  than  five  hundred  pomids,  and 
if  any  Director  or  Treasurer  die,  or  is  removed,  the 
vacancy  shall  be  filled  at  the  next  meeting  of  the  Com- 
pany by  a  major  Vote  of  the  partners  present ;  and  if  any 
of  them  be  found  guilty  of  Fraud  in  the  execution  of  his 
oflice,  a  major  part  of  the  Directors,  concurring  with  the 
major  part  of  the  partners,  shall  put  his  Bond  in  suit,  and 
he  shall  be  declared  no  longer  a  partner. 


I  ^ 


IQ4  HISTORICAL  ACCOUNT  OF 

174  0.  "VII.  All  Mortgages  and  Bonds  shall  be  made  to  the 
"^""^"  Directors  for  the  use  of  the  Company,  except  what  is 
given  by  any  Director,  which  shall  be  made  to  the  rest  of 
the  Directors ;  and  all  mortgages  shall  be  put  upon  pub- 
lick  Record,  to  prevent  clandestine  conveyances ;  the 
charge  of  recording  to  be  paid  by  the  Mortgager ;  and 
every  partner  shall  be  obliged  on  demand  of  the  directors, 
or  the  major  part  of  them,  to  give  such  better  security  as 
they  shall  think  needful,  in  case  their  security  already 
given  be  by  them  esteemed  insufficient,  and  if  any  of 
them  refuse  so  to  do,  his  Mortgage  shall  be  sued  out,  and 
he  shall  no  longer  be  partner. 

"  VIII.  To  oblige  all  partners  to  pay  their  Interest  and 
Dividend  of  the  principal  punctually,  whoever  neglects 
paying  above  3  months  after  it  is  due,  his  mortgage  shall 
be  put  in  Suit,  and  he  shall  be  no  longer  a  Partner. 

"  IX.  The  Directors  shall  from  Time  to  time  put  out 
upon  Lawful  Interest  on  good  security,  all  such  sums  as 
shall  be  in  the  Treasurer's  hands,  for  the  use  and  benefit 
of  the  Company ;  the  Annual  contingent  charge  first 
deducted ;  the  Borrowers  to  pay  principal  and  Interest  in 
the  Company's  Bills  ;  or  in  the  aforesaid  manufactures. 

"  X.  There  shall  be  a  meeting  of  the  Partners  on  the 
second  Tuesday  in  June  annually ;  and  at  the  end  of  five 
years  at  that  meeting,  there  shall  be  a  Dividend  made  of 
so  much  of  the  profits  as  shall  be  agreed  on  by  a  major 
part  of  the  Directors,  concm-ring  with  a  major  part  of  the 
partners  then  present ;  and  from  that  time  there  shcdl  be  a 
Dividend  at  every  annual  meeting  ;  Provided  always,  that 
in  all  such  Dividends  care  shall  be  taken  that  there  still 
remain  in  the  Stock  double  the  Principal  paid  in  from 
time  to  time  as  aforesaid. 

"  XI.  It  shall  be  iiL  the  power  of  any  partner  to  redeem 
the  estate  he  hath  mortgaged  at  the  end  of  five  years,  or 
afterwards,  he  having  the  consent  of  the  major  part  of  the 
Directors,  with  the  major  part  of  the  Partners,  by  paying 
in  the  money  he  received  out  thereon,  with  the  Interest 
then  due,  either  in  the  Company's  Bills,  or  in  the  Manu- 
factures before  mentioned. 


MASSACHUSETTS  CUllREJNCY.  |  Q5 

"XII.  Whereas  it  is  principally  dcsignedj  that  all  the  1740. 
Subscribers  shall  give  Land  Security,  as  before  mentioned  -^-^^^ 
in  the  third  Article  ;  yet  as  there  are  many  Artificers  and 
Traders  in  this  town  of  Boston,  in  good  Credit,  who  have 
not  Real  Estate  to  mortgage,  but  can  give  good  personal 
Security  to  the  Satisfaction  of  the  Directors ;  Now  that 
such  persons  and  they  only  may  be  encouraged  in  their 
respective  occupations,  it  shall  be  in  the  power  of  the 
directors  to  admit  such  })crsons  to  be  subscribers,  but  none 
for  more  than  One  Hundred  Pounds,  they  giving  Bond 
with  two  sufficient  sureties  in  double  that  sum. 

"  XIII.  As  the  signers  of  the  Bills  oblige  themselves  to 
the  Possessors  in  behalf  of  the  partners,  so  the  Partners 
must  oblige  themselves  by  an  Instrument  to  indemnify 
the  Signers. 

"  XIV.  At  the  annual  meeting  in  June,  all  Accompts  ■ 
relating  to  the  company  shall  be  laid  before  them  by  the 
Directors  and  Treasurer,  and  a  major  part  of  the  Directors, 
concurring  with  a  major  Part  of  the  Company  then  pres- 
ent, may  agree  upon  any  other  Rules  or  Methods  for  the 
better  observing  and  fulfilling  the  Articles  aforesaid. 

"  The  Bill  to  be  as  follows,  viz. : 

TWENTY     SHILLINGS. 

"  TVe  Promise  for  ourselves  and  Partners  to  receive 
this  Twenty  Shilling  Bill  of  Credit,  as  so  much  Lawful 
Money,  in  all  Payments,  Trade  and  business,  and  after 
y^  expiration  of  twenty  yeares  to  pay  y^  possessor  y^  value 
thereof  in  Manufactures  of  this  Province.     Boston,  etc." 

^  His  Excellency  writes  to  the  Colonels,  urging  them  to  Dec. 
make  rigid  scrutiny  of  all  officers  in  their  regiments,  sus- 
pected of  promoting  this  company's  object,  and  to  dismiss 
all  who  persist  in  such  a  course  of  action.  He  also 
requires  the  several  County  Registers  to  forward  him  a 
list  of  the  deeds,  from  partners  in  it,  as  recorded  on  their 
books.  The  Courts  of  Sessions  are  prohibited  from  allow-  20. 
ing  licenses  to  any  who  are  similarly  disobedient.     No 

•  Massachusetts  Provincial  Records. 

14 


106 


HISTORICAL   ACCOUNT   OF 


1741.  lawyer  is  allowed  to  plead  before  the  Council,  who  is  alike 
chargeable.  Indeed,  no  class  of  the  community  escapes 
the  energetic  inquisition  of  the  Executive  authorities. 

^  A  gentleman,  writing  to  his  correspondent  in  London, 
on  the  state  of  our  Province,  relates — "  The  Governor  and 
Council  are  dismissing  all  officers,  civil  and  military,  from 
their  appointment,  who  are  concerned  in  this  combina- 
tion," that  is,  the  Land  Bank.  "Whole  troops,  nay, 
almost  whole  Regiments  either  resigned  or  told  their 
Colonels,  who  examined  them,  that  they  would  resign, 
rather  than  not  encourage  the  bills." 

2  A  spirit  kindred  to  this,  infused  itself  into  a  portion  of 
the  towns,  who  resolve  that  they  will  pay  their  rates  in 
such  money. 
March  ^With  regard  to  private  banks,  a  letter  from  Francis 
~^-  Wilks  to  Secretary  Willard,  has  the  subsequent  extract : — 
"  A  Bill  is  just  passed  the  House  of  Commons  to  extend 
the  Act,  commonly  called  the  Bubble  Act  passed  in  1720, 
to  the  Plantations  in  America,  after  it  had  sundry  altera- 
tions from  what  was  first  printed.  I  am  satisfied  it  is  the 
determined  resolution  of  the  Parliament  to  dissolve  all 
companies  in  America,  who  have  put  forth  any  Notes  or 
Bills  to  pass  in  publick.  and  to  prevent  any  from  doing  it 
hereafter." 

Resistance  is  manifested  towards  the  Governor  in  vari- 
ous modes  and  instances,  as  though  he  had  assumed  and 
exercised  arbitrary  power.  Of  the  many  letters  forwarded 
to  him  by  those  who  fell  under  his  displeasure,  is  one 
April  from  Henry  Lee,  Esq.,  of  Worcester.  "^In  it  the  author 
confesses  himself  an  approver  of  the  Manufactory  Bank, 
and  thus  gives  expression  to  his  purpose  and  sentiment : — 
"  I  am  determined  to  do  what  I  can  to  encourage  it,  and 
think  the  priviledge  of  an  Englishman  is  my  sufficient 
warrant.  To  sacrifice  my  post  for  the  service  of  my  coun- 
try, is  infinitely  more  honourable  than  to  keep  it  on  such 
base  conditions."  Here  we  have  an  outbreaking  of  the 
Magna  Charta  spirit — a  spark  of  the  Revolutionary  ardor. 

1  Letter  to  a  Merchant  in  London.  "  Mass.  Archives— Letters,  vol.  iii. 

2  New  England  Weekly  Journal.  *  Mass.  Archives— Pecu.,  vol.  iii. 


MASSACHUSETTS  CURRENCY.  I(j7 

While   clashing  resolutions  thus   prevailed,   there  is  a  1741. 
mania  for  banking,  considerably  resembling  what  has  been  -^-^-^ 
witnessed   in   later   days.      Some    companies   in   several 
counties  determine  to  enter  the  vortex  of  such  specula- 
tion.^    One  of  Essex  County  had  applied  to  the  Legisla-  Apiul 
tm-e  for  leave  to  issue  notes  of  £50,000  on  land  securities. 
They  were  not,  however,  encouraged  to  proceed,  though 
they  had  gone  so  far  as  to  engage  an  engraver  for  their 
bills.     Another  was  proposed  by  residents  in  Scituate  and 
neighboring   towns,   and  a  third   in    Middlesex  County, 
which  met  with  no  better  success  on  application  to  the 
General  Court. 

^That  we  may  have  a  general  idea  of  the  mixed  cur- 
rency at  this  time,  the  succeeding  extract  is  quoted : — 
"  We  have  in  Massachusetts  public  bills  of  four  Provinces 
at  29'  for  an  oz.  of  silver.  New  tenor  of  Massachusetts 
at  6/8,  but  currant  at  9/8  oz.  of  silver.  Connecticut  new 
tenor  at  8',  and  Rhode  Island  new  tenor  at  6/9,  of  private 
bills  are  £110,000  of  silver  money  scheme  or  merchants' 
notes,  issued  in  1733,  to  prevent  an  enormous  Rhode 
Island  emission  from  depreciating  our  currency.  They 
are  punctually  paid  in  gold  and  silver,  and  are  33  per  cent, 
better  than  Province  bills.  There  is  another  sum  of 
£120,000  in  merchants'  notes  emitted  in  1740  on  a  silver 
bottom  to  stifle  the  Land  Bank — which  are  equivalent  to 
cash.  They  who  are  responsible  for  them  are  eminent 
and  wealthy  merchants.  The  Bills  of  the  Land  Bank  or 
manufactory  scheme  are  payable  in  twenty  years,  and 
then  only,  in  goods  at  an  arbitrary  price." 

While  the  resistance  of  Mr.  Belcher  to  banlving  associa- 
tions rather  increased  than  diminished  their  zeal,  because 
they  construed  his  activity  in  this  respect,  as  the  result  of 
an  aristocratic  temper,  he  and  his  friends  are  startled  at  the 
rife  reports  of  a  plotted  insurrection.  ^  One  person  deposes,  ^Tay 
that  he  has  been  assured,  that  a  thousand  men  are  to  rise 
in  Boston  and  be  increased  with  twenty  thousand  from 
the  country.     Others  testify,  that  the  malcontents  mean     H- 

'  New  England  Weekly  Journal.  -^  Massachusetts    Archives — Pecu- 

^  Letter  to  a  Merchant  in  London.       niary,  vol.  iii. 


JQ3  HISTORICAL  ACCOUNT  OF 

1741.  to  march  for  the  metropohs  and  demand  the  reasons  for 

^"'""^  opposition  to  the  Land  Bank,  and  to  mob  the  traders  who 

should  refuse  to  sell  coin  for  its  bills.     That  there  were 

attempts  to  promote  something  of  this  sort,  is  plain  from 

the  evidence  given  under  oath. 

As  a  (Confirmation  of  these  statements,  we  have  two 
letters  from  under  the  hand  of  Governor  Belcher.  One 
of  them  is  addressed  to  Secretary  Waldron,  and  is  in  point, 
as  well  as  in  relation  to  a  topic  which  he  had  suggested. 
May  1  <<  The  Land  Bank  concern  openly  defy  the  act  of  Par- 
■  liament,  are  now  combining  -to  raise  a  rebellion,  and  are 
coming  to  Boston  at  Election,  the  27th  inst.  I  have  this 
day  sent  the  sheriff  and  his  officers  to  apprehend  some  of 
the  conspirators.  The  Land  Bank  does  so  affect  every 
affair  in  the  Assembly  and  throughout  the  Province,  that 
it  will  be  the  ruin  of  the  government  and  people,  if  it  be 
not  speedily  and  effectually  crushed.  I  will  at  the 
first  leisure  moment,  sit  down  and  gravely  consider  your 
scheme  for  issuing  bills  of  credit,  though  I  tell  you  before 
hand,  if  it  does  not  secure  an  invariable  value  to  the  bills, 
that  is,  to  be  worth  as  much  to-morrow,  next  day,  and 
all  the  time  they  are  extant,  as  at  the  moment  they  are 
issued,  or  I  might  have  said,  to  be  at  the  first  of  their 
coming  out  and  always,  what  they  are  called  in  the  face, 
I  say,  unless  effectual  care  can  be  taken  for  so  ascertaining 
of  them,  I  can  never  be  in  opinion  of  any  scheme  for  a 
paper  currency.     Every  other  th'mg  must  be  a  cheat  and 

delusion." 

~  The  other,  directed  to  Thomas  Hutchinson,  has  the 
subsequent  language: — ''You  say,  it  would  be  much 
better  if  some  other  way  than  by  application  to  Parliament 
could  be  found  to  suppress  it,  (Land  Bank.)  I  assure  you, 
the  concerned  openly  declare  they  defy  any  act  of  Parlia- 
ment to  be  able  to  do  it.  They  are  grown  so  brassy  and 
hardy  as  to  be  now  combining  in  a  body,  to  raise  a  rebel- 
lion, and  the  day  set  for  their  coming  to  this  town  is  at 
the  Election,  and  their  Treasurer,  I  am  told,   is  in  the 

>  Governor  Belcher's  Correspond-  ^  Governor  Belcher's  Correspond- 

ence— in  the  Library  of  the  Massa-       ence. 
chusetts  Historical  Society. 


MASSACHUSETTS  CURRENCY. 


109 


bottom  of  the  design  and  T  doubt  it  not.     T  have  this  day  1747 
sent  the  sheriff  and  his  officers  to  ai)prehcnd  some  of  the  -^^'^^ 
heads  of  the  conspirators." 

The  energetic  measures  adopted  on  this  occasion,  strike 
a  damp  upon  the  feehngs  of  the  conspirators,  and  they 
draw  back  from  their  hazardous  purpose.  The  individuals, 
so  imphcated,  were  chiefly  from  what  are  now  denomi- 
nated Plymouth  and  Norfolk  Counties. 

^  While  the  Land  Bank  is  the  occasion  of  such  a  disposi-   IVIay 
tion  among  many  of  tlie  people,  its  influence  is  renewedly     " 
exhibited  in  the  Assembly.     The  House  propose  several 
of  its  supporters  for  members    of  the  Council,  but   the 
Governor  puts  his  veto  upon  them.     Nor  did  he  stop  here. 
He  sends  the  subsequent  message  to  the  Representatives.     28. 
"  The  management  of  the  Elections  made  yesterday,  dis- 
covers to  me  so  much  of  the  inclination  of  your  House  to 
support   the   fraudulent,    pernicious    scheme,    commonly 
called  the  Land  Bank,  condemned  at  home  by  his  Majesty 
and  Parliament,  that  I  judge  it  derogatory  to  the  King's 
honor  and  service,  and  inconsistent  with  the  peace  and 
welfare  of  this  people,  that  you  sit  any  longer  in  General 
Assembly,  and  I  have  therefore  directed  Mr.   Secretary 
Willard  to  declare  this  Court  dissolved." 

~  Perceiving  his  Excellency  to  be  so  determined.  Rev.  j^j^^ 
Jonathan  White,  of  Gloucester,  writes  an  apology  to  him  29. 
for  being  concerned  with  such  a  company.  He  relates, 
that  his  people  had  so  far  failed  in  their  fishery,  by  reason 
of  war  with  Spain,  and  fear  of  war  with  France,  that 
they  owed  him  £200  of  his  salary,  which  greatly  strait- 
ened his  family,  and  drove  him  to  hire  money.  He  then 
says,  "  I  pray  that  my  difficult  and  perplexed  circum- 
stances may  apologise  and  excuse  for  my  being  concerned 
in  the  Land  Bank.  When  I  first  gave  in  my  name,  I 
looked  upon  it  as  just  and  beneficial  to  the  publick.  But 
it,  in  the  event,  proving  hurtful,  I  am  sorry  I  was  ever 
concerned  in  it." 

While  Governor  Belcher  thus  strenuously  set  himself 

*  Journal  of  House. 

-Massachusetts  Archives  —  Letters,  vol.  iii. 


110 


HISTORICAL  ACCOUNT  OF 


1741.  against  private  banks,  the  majority  of  the  R  epresentatives 
-^^^'^^  delay  not  to  retaUatc.  Ah-eady  had  they  instructed  their 
friends  in  London  to  sohcit  his  removal.  Nor  were  their 
efforts  unsuccessful.  He  is  recalled  before  accomplishing 
what  he  honestly  considered  an  important  work  of  reform 
in  our  political  economy. 
July  ^  His  course  in  this  country  was  misrepresented  to  the 
3'  Royal  Council,  by  those  who  took  advantage  of  his  un- 
popularity with  the  advocates  of  the  Land  Bank,  so  as  to 
get  him  displaced,  in  the  hope  of  advancing  their  own 
interest.  Nor  was  this  management  discovered  till  he 
was  actually  ejected  from  office.  When  the  rights  of  the 
case  came  to  be  properly  understood,  he  was  placed  in  the 
government  of  New  Jersey.  In  writing  to  his  brother  on 
his  loss  of  the  government  here,  he  thus  gives  vent  to  his 
emotions.  "  I  must  needs  own,  it  gives  me  a  terrible 
shock,  and  the  more  so,  when  I  consider  how  faithful  I 
have  been  to  the  King,  and  after  all  to  be  turned  out 
without  fault  or  complaint,  I  think  must  be  a  great  dis- 
couragement to  all  faithful  servants." 

William  Shirley  having  been  appointed  as  his  successor, 
arrives  to  resume  his  task.  This,  in  point  of  labor,  had 
much  resemblance  to  Sysiphus  rolling  his  stone.  As  an 
alleviation,  however,  of  his  toil,  he  does  not  insist  on  the 
withdrawal  of  the  Province  notes  so  soon  as  his  prede- 
cessor did. 
Aug.  Still,  in  his  first  speech,  he  describes  his  views  of  pe- 
^^'  cuniary  affairs,  as  far  from  being  bright  and  cheerful.  A 
compend  of  this  document  gives  us  the  ensuing  facts.  It 
is  hoped  that  the  legislation  of  Parliament  will  terminate 
the  miseries  accumulated  on  the  Province  by  the  depre- 
ciation of  its  bills.  It  states,  that  exchange  between 
sterling  and  Massachusetts  paper  is  450  per  cent,  in  favor 
of  the  former,  and  hence  creditors,  as  the  law  stands, 
suffer  immensely,  except  those  who  make  their  contracts 
on  special  conditions.  It  intimates  that  such  a  state  of 
trade  is  an  abundant  source  of  dishonesty.     It  remarks, 

1  Governor  Belcher's  Letters. 


MASSACHUSETTS  CURRENCY.  |  {  [ 

that  the  adjacent  Colonics  have  flooded  Massachusetts  1741. 
with  their  paper  money,  to  the  great  profit  of  themselves,  ^^^-^^^ 
but  to  the  greater  detriment  of  our  community. 

In  conformity  with  the  implied  wish  of  Mr.  Shirley,  Sept. 
in  this  document,  ^  a  committee  of  the  Court  meet  at 
Milton,  to  examine  the  condition  of  the  Land  Bank. 
They  find  that  £49,250  of  its  notes  are  struck  ofl"  and 
endorsed,  and  that  the  Treasurer  had  issued  them  from  his 
hands  to  the  amomit  of  £35,582,  and  that  the  Directors 
employ  £4,067  of  them  in  trade.  This  investigation  is 
soon  followed  with  heavy  restrictions  upon  the  funds  of 
the  company. 

As  a  sample  how   banking  concerns  figured  in  poetry 
)  as  well  as  prose,  the  following  is  presented.     ^  It  is  a  dia- 
logue   between  Ralph,  a  freshman   at  College,   and   his 
brother  Will,  a  rustick ;  wherein  Ralph  undertakes  to  in-     ' 
struct  Will  in  State  affairs: 

Ralph. 

"  "  Two  bits  of  paper  from  the  plate, 

lugaged  iu  cruel  wars  of  late, 
Drest  in  the  pride  of  copper  cuts, 
Each  other  charged  with  beiug  cheats," 

Will. 

"  Stay pleased  to  explain ; 

I  fain  would  know  what  'tis  you  mean." 

Ralph. 
"The  Land  Bank  and  the  Silver  scheme 
Was  all  last  winter's  noisy  theme, 
Till  their  debates,  at  length,  were  sent 
For  issue  to  the  Parliament." 

A  message  from  the  Governor  is  forwarded  to  the  Rep- 
resentatives, that  the  restriction,  on  the  emission  of  more 
than  £30,000  in  paper,  is  rescinded.  This  is,  to  their 
ears,  like  good  news  from  a  far  country. 

^As  a  means  to  correct  the  effects  of  a  deranged  cur- 1742 
rency,  is  the  enactment  of  the  Equity  Bill,  which  had  Jan- 
been  long  on  the  tapis,  and  which  experience  had  proved 

*  Massachusetts   Archives — Pecu-  "  Ames'  Almanack,  1742. 

niary,  vol.  iii.  ^  a^Is  of  Massachusetts. 


]  j2  HISTORICAL  ACCOUNT  OF 

1742.  to  be  very  necessary.  This  document  requires,  that,  after 
-^"•^'^  the  1st  of  February  next,  all  coined  silver  of  sterling 
alloy  shall  pass,  as  lawful,  at  6/8  the  ounce,  troy  weight, 
and  other  money  in  the  same  proportion  ;  "  and  as  bills  of 
credit  have  been  fluctuating  and  uncertain  in  their  value, 
whereby  many  mischiefs  and  inconveniences  have  arisen," 
those  now  to  be  emitted  shall  be  equal  to  hard  money, 
and  pass  at  the  preceding  rate.  It  provides,  that  all  debts, 
which  shall  be  contracted  within  five  years,  shall  be  pay- 
able in  such  notes,  special  agreements  excepted ;  and  if 
they  depreciate,  allowance  shall  be  made  accordingly.  It 
demands,  in  order  to  prevent  discount  on  the  intended 
paper  money,  that,  whenever  exchanged  for  silver,  it  shall 
pass  in  proportion  of  6/8  an  ounce  of  such  metal. 
March  ^  A  Committee  ^  for  the  settlement  of  the  Land  Bank, 
^^'  publish  a  pressing  call  on  its  stockholders  to  settle  its 
demands  upon  them.  This  call  contains  the  succeeding 
items.  "It  is  now  nine  months  since  the  company's  vote 
at  Lynn,  that  no  more  bills  should  be  issued  out  of  the 
Treasury  till  the  next  meeting,  and  more  than  six  months 
since  the  vote  passed  at  Milton  to  bring  in  and  consume 
to  ashes  all  the  outstanding  bills.  By  the  delay  of  those 
indebted  to  the  institution,  our  company  is  thrown  into 
the  last  extremity  of  confusion ;  and  without  the  most 
speedy  measures  are  pursued  in  bringing  in  the  biUs,  the 
consequence  will,  we  fear,  prove  ruinous  to  some  hundreds 
of  the  partners.  The  possessors  of  our  bills  are  more  and 
more  uneasy  every  day,  as  that  part  of  their  estates  lies 
useless  by  them,  and  are  so  incessant  in  their  worries,  that 
the  Directors  have  in  their  late  advertisement  implicitly 
threatened  to  be  on  the  possessors'  side  against  the  delay- 
ing partners."  ^ 
April  ^  While  his  Excellency  and  the  rest  of  the  General  Court 
''•  are  doing  what  they  can  to  prevent  ruinous  collapses  in 
the  machinery  of  monied  interests,  he  publishes  an  Act  of 
Parliament,  which  lays  an  interdict  on  all  stock  associa- 
tions without  charters. 

1  Boston  Gazette.  ^  Massachusetts  Archives  —  Pecu- 

-Ebenezer       Hartshorn,       Jacob       niary,  vol.  iii. 
Sheafe,  Peter  Prescott. 


MASSACHUSETTS  CURRENCY.  \  \  3 

In  accordance  with  this  Act,  all  the  proprietors  of  the  1742. 
Land  and  Specie  companies,  wlio  ceased  connection  with  ^^ 
their  operations  before   the  29th  of  September  last,  and 
who  immediately  settle  all  their  dues  to  them,  are  to  be 
saved  harmless  from  the  penalties  specified  in   such  an 
instrument. 

^  It  is  enacted  that  £A  in  bills  of  the  old  tenor,  and  April 
26/8  of  the  fii'st  new  tenor,  otherwise  called  middle  ^^• 
tenor,  shall  be  received  in  all  public  payments  equal  to 
20*  in  bills  of  the  last  form,  and  so  pro  rata  for  a  greater 
or  less  amount.  It  must  have  required  some  of  Mr.  Bid- 
die's  genius  to  have  readily  and  correctly  managed  so 
complicated  a  mode  of  calculating  the  different  denomina- 
tions of  the  Province  paper. 

The  Act  of  Parliament,  just  mentioned,  leads  to  the 
ensuing  resolve  : — ''Whereas  it  is  expedient  and  necessary 
for  the  peace  and  quiet  of  his  Majesty's  subjects  in  this 
Province,  that  all  the  notes  of  the  silver  and  manufactory 
schemes  should  be  drawn  in  and  consumed,  as  soon  as 
may  be,"  a  committee  are  appointed  to  investigate  them, 
and  report  at  the  approaching  session,  so  that  their  notes 
may  be  collected  and  consumed. 

2  To  show  the  fears,  feelings,  and  situation  of  stock-  May 
holders  in  the  Land  Bank,  the  petition  of  twenty-two  of  ^^' 
them  to  the  General  Court  is  here  cited.  "  We  the 
subscribers  were  partners  in  that  unlucky  and  luifortunate 
scheme,  called  the  Land  or  Manufacture  Bank,  and  when 
the  Act  from  Great  Britain  arrived  here  and  was  published, 
we  yielded  as  speedy  compliance  thereunto  as  was  possible 
for  us  to  do  by  paying  in  our  respective  parts  or  shares, 
and  renouncing  being  any  longer  partners  in  the  said 
affair.  But  some  of  our  fellow-partners  were  incredulous, 
and  would  not  believe  that  there  was  any  such  Act,  and 
so  under  that  incredulous  notion,  or  rather  through  wilful 
negligence,  have  not  nor  will  pay  in  their  several  shares 
and  parts  of  the  said  Land  Bank  or  Manufactory  Bills,  al- 
though they  have  been  cautioned  so  to  do  by  this  honoura- 

'  Massachusetts    Provincial    Rec-  "Massacliusetts    Archives — Pecu- 

ords.  niary,  vol.  iii. 

15 


jj^  HISTORICAL  ACCOUNT  OF 

1742.  ble  Court,  and  so  by  their  obstinate  and  wilful  negligence, 
-^"^""-^  or  dishonest  delays  and  dealings,  your  petitioners'  persons 

and  estates  lie  exposed  to  the  demands  of  the  possessors 
of  the  said  bills,  and  several  of  your  petitioners  have 
already  had  demands  made  on  them  by  the  possessors  of 
the  said  bills,  to  exchange  several  large  sums  of  the  said 
bills,  and  the  processes  are  now  out  against  them  therefor. 
And  yet  we  lie  further  exposed  to  have  more  and  greater 
demands  made  upon  us,  and  may,  as  we  greatly  fear, 
prove  the  undoing  of  your  petitioners."  Therefore  they 
pray  for  needed  relief  in  the  premises.  A  committee  are 
accordingly  appointed. 
June  ^  The  gentlemen  .  so  intrusted,  report  on  the  "  silver 
^^'  scheme."  They  state  that  this  ^  association  had  emitted 
£120,000  in  notes,  and  recalled  £69,361  12  6  of  them, 
leaving  still  in  circulation  £50,638  7  6. 

Though  the  officers  and  other  partners  in  these  monied 
institutions,  placed  under  the  ban  of  a  Parliamentary 
enactment,  had  already  met  with  no  small  trouble,  yet 
they  were  to  experience  much  more.  The  powerful 
opposition  under  which  they  commenced  operations,  was 
but  a  dark  omen  of  their  catastrophe. 

While  these  institutions  fill  a  large  space  in  the  public 
vision,  the  last  series  of  Province  notes  do  not  help  the 

1743.  community  so  much  as  anticipated.  Individual  interest 
"^^Z^'  then,  as  it  generally  has  in  all  ages,  being  made  para- 
mount to  the  common  benefit,  is  the  occasion  of  so  bitter 
a  disappointment  to  the  true  guardians  of  the  country. 
^  The  notes,  payable  in  specie,  are  hoarded  up,  and  others 
are  imposed  on  the  inhabitants  for  their  produce  and 
manufactures.  Hence,  the  common  currency  is  the  paper 
of  adjoining  Colonies,  and  that  of  this  Province  is  not 
enough  to  meet  the  demands  for  taxes. 

June       ^  But,  however,  the  last  Treasury  notes  are  scarce,  and 


25. 


•Massachusetts    Archives — Pecu-  Oliver,     Samuel     Sewall,      Joshua 

niary,  vol   iii.  Winslow,  Hugh  Hall,  and  another 

-  The  first  directors  of  the   Silver  illegible. 

echeme,  when  its  bills  were  emitted,  ^  Massachusetts    Provincial    Rec- 

were     .Tames     Boutineau,    Thomas  ords. 

Oxnard,  Edmund  Quincy,  Andrew  ■*  Acts  of  Massachusetts. 


MASSACHUSETTS  CURRENCY.  115 

well  secured  by  severe  provisions  for  being  redeemed,  1743. 
according  to  the  Government  pledge,  still  they  are  rated  '-"^'^ 
at  7/2  for  an  ounce  of  silver,  estimated  at  6/8.  As  the 
public  faith  had  been  suffered  to  be  violated  respecting 
the  payment  of  Province  bills,  it  is  not  fully  credited  now, 
though  backed  with  promises  more  strongly  guarded,  and 
thus  the  paper  falls  from  its  appointed  valuation. 

^  To  lessen  this  evil,  the  Legislature  of  Massachusetts  July, 
propose  to  New  Hampshire,  Rhode  Island  and  Connecti- 
cut, to  have  commissioners  meet  with  theirs  at  Worcester, 
on  the   first  Wednesday  of  November,  to  prevent  further 
depreciation  of  llio  bills  of  credit  in  New  England,  and     ,    . 
bring  said  bills  to  a  period,  consistently  with  the  best  in-     -• 
terests  of  the  said  Colonies. 

-As  many  stockholders  in  the  Land  Bank,  who  had  Nov. 
complied  with  the  order  of  Government,  are  made  liable 
for  its  paper,  and  have  suffered  great  loss,  because  others 
of  their  company  neglect  to  imitate  their  example,  the 
Legislature  commit  the  settlement  of  this  institution  to 
several  commissioners. 

^  In  speaking  on  the  pecuniary  affairs  of  the  Common-  1744 
wealth,  the  Executive  gives  the  ensuing  details.  Of 
Rhode  Island  bills,  now  in  circulation,  and  amounting  to 
£440,000,  £350,000  are  passing  in  Massachusetts,  and 
also  £50,000  of  Connecticut.  On  these  two  sums,  the  •  . 
people  here  have  lost,  by  the  fall  of  them,  £25,000  in 
nine  months,  which  is  so  much  proportioned  gain  to  the 
two  Colonies.  This  and  other  such  losses  equal  £  180,000. 
Not  only  this,  but  their  bills  reduce  the  value  of  those 
issued  by  Massachusetts.  The  Governor  also  observes, 
that  it  is  an  error  to  allow  the  Colonies  to  coin  money  or 
make  bills,  and  that  this  is  a  Royal  prerogative. 

The  House,  knowing  that  individuals  here  had  peti-     27. 
tioned  Parliament  to  take  measm-es  for  controlling  the 
paper  currency  of  the  American  Colonies,  and  believing 
this  to  be  contrary  to  their  Charter  privileges,  order  in- 
structions to  their  agent,  Christopher  Kilby,  so  that  he 

*  Massachusetts     Archives  —  Let-  "  Massachusetts  Acts, 

ters,  vol.  iii.  ^  Journal  of  the  House. 


Feb. 

8. 


116  HISTORICAL   ACCOUNT   OF 

1744.  may  endeavor  to  prevent  such  interference.     The  Council 

'^     refuse  to  have  part  or  lot  with  the  Representatives  in  this 

movement.     The  latter  seem  to  have  been  induced  partly 

to   pursue  such  a  course  by  the  closing  remark  of  the 

Governor. 

March  ^  In  despite  of  the  measures  previously  adopted,  to  ex- 
^-  elude  the  bills  of  adjacent  Colonies,  they  still  find  many 
who  receive  and  pass  them.  His  Excellency  assm^es  the 
Assembly  that,  unless  they  cut  short  this  practice,  their 
Charter  will  be  forfeited.  A  Bill  was  accordingly  passed 
to  be  enacted. 
May  ^In  quoting  from  an  Election  sermon  of  Mr.  James 
^^-  Allen,  a  performance,  which,  as  annually  given,  furnished 
the  leading  topics  of  discussion,  and  thus  valuable  for  its 
history  as  well  as  for  its  moral  and  religious  instructions, 
has  the  ensuing  passage  : — "And  that  you  (the  Governor) 
will  be  the  means  of  delivering  us  from  the  perplexing 
difficulties  we  are  involved  in,  particularly  by  an  unhappy 
medium,  uncertain  as  the  wind,  and  fluctuating  like  the 
waves  of  the  sea,  and  which  lies  at  the  mercy  of  every 
one  to  rise  or  sink  at  his  pleasure.  Through  the 
unrighteousness  whereof  the  land  mourneth,  and  the 
cries  of  many  are  going  up  into  the  ears  of  the  Lord  of 
Sabaoth." 
Dec.  As  debtors,  who  confided  in  the  last  emission  of  Gov- 
ernment notes,  had  promised  to  pay  lawful  money,  mean- 
ing these  bills,  but  their  creditors  demanded  specie  of 
them,  because  such  paper  had  diminished  in  value,  a  law 
is  passed,  that  no  debtor  shall  be  obliged  to  pay  silver, 
unless  he  received  it  when  contracting  his  obligation, 

1745.  3pj,gssedon  all  sides  with  the  demands  on  their  Trea- 
9  *  smy  for  the  war,  and  not  having  sufficient  funds  to  satisfy 
them,  the  Government  resort  to  the  doubtful  method  of 
raising  £7,500  by  a  Lottery.  One  condition  of  this  con- 
cern is,  that  whoever  adventures  30'  in  it,  may  pay  this 
sura,  one  fifth  in  the  new  tenor,  or  in  old  tenor  bills  at 

'  Journal  of  the  House.  ^  Massachusetts  Acts. 

*  Election  sermon  by  Rev.  James  Allen,  of  Brookline, 


MASSACHUSETTS  CUURENCY,  ] { 7 

four  for  one,  and  the  other  four  fifths  in  the  same  paper,  1746. 
or  in  any  of  New  England  not  prohibited.  — -v^' 

^A  law   is   passed   to   forbid   the  currency  of  Rhode  ^^P^- 
Island,  issued  since  1742.    All  persons  holding  any  offices, 
are  required  to  take  oath,  that  they  will  obey  this  Statute. 
Such  a  rule    was,    either    purposely  or    unintentionally, 
often  overlooked  in  the  choice  of  town  authorities,  and  1747. 
this  caused  many  -petitions  to  the  Legislature,  that  their  ^^9^ 
doings  might  be  made  legal. 

As  debtors  find  the  Equity  law,  in  reference  to  paper    Oct. 
money,  bears  hard  on  them,  the  Council  and  House  desire 
the   Governor  to  have  it  repealed.     But  he  declines,  be- 
lieving it  to  be  more  just  than  the  former  Act,  though  he 
was  aware  that  it  needed  some  modification. 

2  A  report  is  made  by  the  Lords  of  the  Treasury,  on  the  Dec. 
expense  of  the  North  American  Colonies  in  the  expedition 
against  Cape  Breton.  They  state  the  proportion  of  Mas- 
sachusetts to  be  £261,700  0  3  in  their  new  tenor  bills. 
This  computed  at  £142  10  per  cent,  exchange,  makes 
£183,649  2  7^  sterling.  Though  this  corresponds  with 
the  value  of  said  bills  in  1744,  before  the  expedition 
against  Cape  Breton,  yet  it  greatly  exceeds  the  present 
value  of  them.  Such  notes  have  fallen  much  since 
February  14,  1745,  when  the  first  order  was  passed  by 
Massachusetts  to  emit  them  for  the  expedition.  But  Mi\ 
Bollan  contends,  that  the  great  depreciation  of  our  paper 
was  owing  to  the  distress  occasioned  by  that  expedition, 
and  that  no  advantage  should  be  taken  of  such  contin- 
gences.  The  Lords  of  the  Treasury  maintain  that  the 
reduction  of  Massachusetts  paper  might  be  traced  to  the 
uncertainty  of  their  being  redeemed.  The  fact  is,  that 
truth  lay  between  both  of  these  extremes. 

•^Mr.  Kilby,  our  agent  in  London,  writes  to  the  Speaker  1748. 

of  the  House,  that  there  are  many  schemes  before  Parlia-      y"' 

ment,  as  to  the  plan  of  having  the  Colonial  notes  recalled. 

^  It  being  found,  that  in  estimating  the  value  of  Province    Feb. 

o. 

^  Massacliusetts  Acts.  ■*  Massachusetts    Archives  —  For- 

*  Massachusetts    Provincial  Rec-       eijrn  Relations,  vol.  i. 

ords.  '"  Massachusetts    Provincial    Rec- 

^  Mass.  Archives — Colonial.  ords. 


213  HISTORICAL  ACCOUNT  OF 

1748.  notes  only  by  the  standard  of  silver  and  bills  of  exchange, 
"^''"^  there  is  wrong  done  to  the  community,  as  well  as  to  the 
government,  because  such  a  standard  is  suddenly  and 
immoderately  increased  by  speculators,  "It  is  enacted,  that 
when  the  persons  appointed  for  such  a  purpose  make  their 
stated  valuation  of  the  paper  money,  they  shall  do  it  by 
the  prices  of  provisions  and  other  necessaries  of  life,  as  by 
the  customary  scale." 

As  a  general  and  correct  exposition  of  the  state  in 
which  the  country  is  with  respect  to  its  medium  of  ex- 
change, the  succeeding  extracts  from  his  Excellency's 
speech,  are  here  given.  "  The  general  distress  of  the 
Province,  arising  from  extraordinary  emissions  of  paper 
money,  whereby  the  value  thereof,  for  all  occasions  of 
life,  is  sunk  so  low,  and  is  still  sinking,  and  thereby  the 
estates  of  orphans  and  widows,  and  many  others  who 
have  no  remedy  in  their  power  against  this  growing  evil, 
daily  diminishing  which,  must  inevitably,  in  a  little  time, 
bring  many  good  families  to  poverty.  I  most  earnestly 
recommend  to  you  to  find  some  other  way  to  supply  the 
Treasury,  than  by  making  new  emissions  of  paper  money. 
And  I  am  fully  persuaded,  that  you  will  thereby  not  only 
give  relief  to  the  oppressed,  who  justly  expect  it  from 
you,  but  also  whatever  charge  may  attend  any  new 
method  to  supply,  it  will  be  found  in  the  end  to  save 
money  to  the  Province." 

In  accordance  with  the  advice  thus  given,  Thomas 
Hutchinson  moves,  that  the  public  notes  be  redeemed  by 
the  specie,  to  be  received  from  the  Royal  exchequer,  for 
charges  in  the  capture  of  Louisbourg.  In  the  meanwhile, 
merchants  of  London,  who  traded  here,  petition  Parlia- 
ment to  the  same  effect.  The  project  of  Mr.  Hutchinson 
receives  but  little  encouragement  from  the  House  at  first, 
but  it  is  soon  adopted  by  them.  Wearied  by  the  arduous 
bondage  in  which  they  had  been  to  the  Treasury  system 
of  loans,  and  other  frequent  emissions  of  notes,  they  gladly 
comply  with  his  proposal, 
^oy"       A  committee  are  designated  to  meet  similar  bodies 

'  Massachusetts  Provincial  Records. 


MASSACHUSETTS  CURRENCY.  J|g 

from  the  other  New  England  governments  on  the  samei74  8_ 
subject.  A  circular  IcUcr  is  prepared  to  give  such  an  •-^-^-' 
invitation.  But  it  does  not  receive  the  cooperation  of 
New  Hampshire,  Rhode  Island,  and  Connecticut,  which 
was  ardently  wished.  They  suppose  it  better  to  let  their 
monied  concerns  pursue  the  common  course.  The  bur- 
den of  depreciation  in  their  notes,  having  fallen  more  on 
Massachusetts  than  on  themselves,  they  had  not  the  mo- 
tive of  interest  to  draw  forth  their  compliance  which  this 
Province  had. 

This  plan  is  not  without  its  ^  opponents  in  our  Com- 
monwealth. A  considerable  party,  headed  by  Dr.  William  ■. 
Douglas,  the  historian,  though  very  desirous  to  have  the 
paper  taken  out  of  circulation,  contended,  that  it  should 
be  more  gradual  than  proposed ;  and  that,  if  carried  into 
operation  in  its  present  features,  it  would  give  a  fatal  shock 
to  business. 

^Such  a  diversity  of  opinion  was  not  peculiar  to  our  peb. 
country;  it  existed  on  the  other  side  of  the  Atlantic.  29. 
Merchants  in  London,  who  had  commercial  relations  with 
ours,  petition  the  Lords  of  the  Treasury,  that  the  reim- 
bursement for  capturing  Louisbourg  may  not  be  paid  to 
New  England  until  they  establish  the  rate  of  redeeming 
their  bills.  They  state  that  since  the  prospect  of  the 
Colonies'  being  paid  for  the  expenses  of  such  a  conquest, 
there  has  been  great  speculation  in  their  paper  currency. 

^  In  a  circular  written  by  order  of  the  General  Court  March 
to  Connecticut,  New  Hampshire,  and  Rhode  Island,  S* 
about  having  Commissioners  meet  on  the  subject  of 
applying  the  reimbursement  of  Parliament  for  taking 
and  keeping  Cape  Breton,  to  redeem  their  bills  of  credit, 
we  have  the  subsequent  extract : — "  There  have  been 
some  proposals  and  endeavors,  that  the  payment  might 
be  made  by  debenture.  Nothing  seems  so  likely  to  pre- 
vent it,  as  applying  the  money  granted,  to  redeem  and 
finish  our  fatal  paper  currency,  so  absolutely  necessary 
to  the  establishment  and  preservation  of  justice  in  our 

*  Hutchinson.  ^Massachusetts   Archives  —  Colo- 

-  Massachusetts  Archives  —  Pecu-      nial,  vol.  v. 
niary,  vol.  iii. 


220  HISTORICAL  ACCOUNT  OF 

1748.  commerce,  and  so  much  for  the  interest  of  Great  Britain, 

"""^""^  as  well  as  ourselves." 

This  absorbing  topic  is  viewed  by  distant  friends  of 
our  Province  with  mingled  feelings  of  hope  and  fear. 
Among  them  is  its  late  Chief  Magistrate,  Mr.  Belcher, 
now  Governor  of  New  Jersey.  ^  He  writes  to  Mr.  Minot ; 
"  I  am  glad  Massachusetts  is  like  to  be  retrieved  from  her 
bankrupt  circumstances  by  the  interposition  of  the  British 
Parliament,  in  a  just  reimbursement  of  their  charge  in 
the  conquest  of  Cape  Breton.  So  shall  my  dear  native 
country  again  sit  as  a  queen  among  the  Provinces." 

Oct.  ^  His  Excellency  has  the  ensuing  passages  in  his  speech. 
^'-  f'  By  advices  I  have  received  from  Great  Britain,  I  have 
reason  to  think,  that  the  Bill  transmitted  to  your  agent, 
containing  a  scheme  for  sinking  the  whole  paper  currency 
of  this  Province  by  means  of  the  late  reimbursement, 
voted  by  Parliament,  and  which  passed  both  Houses  of 
the  last  Assembly,  has  induced  his  Majesty's  ministers,  to 
whose  consideration  the  manner  of  paying  the  money 
voted  for  the  benefit  of  the  Colonies  concerned  is  referred, 
to  determine  it  shall  be  paid  in  such  manner  as  will  put 
an  end  to  the  paper  currency  in  New  England."  Various 
schemes  have  been  offered  by  gentlemen  in  England,  to 
the  Government  there,  on  this  subject.  He  suggests  to 
the  General  Court  that  they  had  better  send  despatches  to 
be  in  London  by  the  session  of  Parliament  early  in  the 
winter,  so  as  to  prevent  the  adoption  of  any  method  inju- 
rious to  this  Province. 

Nov.  3g|-i[i  impressed,  that  their  plan  for  closing  the  papei* 
currency  in  Massachusetts  could  not  be  fully  accomplished 
while  adjacent  Colonies  did  not  cooperate  with  them,  our 
Legislature  hear  a  report  of  their  committee  for  another 
invitation  for  delegates  from  those  Governments  to  meet 
in  Boston  relative  to  the  subject. 

Respecting  the  grant  made  by  Parliament,  Mr.  Shirley 
14.    states  in  his  ^message,  that  this  sum,  at  the  rate  of  £10 

1  Governor  Belcher's  Letters.  ^  Massachusetts    Provincial    Rec- 

^  Massachusetts    Provincial    Rec-      ords. 
ords.  *  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY.  |21 

ill  bills,  for  £1  sterling,  will  draw  in  all  their  paper  money,  1749, 
except  £50,000  of  the  last  emission,  v^-v^- 

Desirous  that  the  plan  here  mentioned,  may  be  exe-  j^^t^^^ 
cuted  as  soon  as  possible,  the  General  Court  ^  petition  the  22. 
Lords  Commissioners  of  the  Treasury  in  London,  that  the 
reimbursement  may  be  forwarded  with  all  despatch. 
They  express  their  expectation,  that  this  sum  will  close 
the  paper  currency  in  their  jurisdiction,  and  will  substitute 
gold  and  silver. 

~  Notwithstanding  the  repeated  efforts  to  have  the  Colo-    Dec. 
nies  bordering  on  Massachusetts  adopt  the  mode  of  having 
only  hard  currency.  Governor  Shirley  says  he  despairs  of 
thus  gaining  them  over,  and  advises  the  Court  to  go  for- 
ward, though  under  so  great  an  embarrassment. 

^Some  merchants  of  Boston  memorialize  the  Assembly,  1749. 
desiring  that  the  Bill  before  them  for  terminating  the  cur-  *|^"- 
rency  of  notes  with  the  funds  expected  from  London. 
They  observe,  that  they  do  this  not  only  because  they 
really  wish  for  it,  but,  also,  to  show,  that  representations, 
as  though  they  were  opposed,  were  not  correct.  Other 
merchants  of  the  same  place  request  that  the  Bill  may  be 
published,  and  carefully  considered,  before  it  is  passed. 
The  latter  petition,  however,  did  not  prevail. 

■*  A  law  is  made  for  the  redemption  of  the  Province  bills  26. 
of  credit.  It  requires  all  this  paper  to  be  exchanged  at 
the  treasury  by  March  31,  1750,  at  the  following  rates : — 
For  forty-five  shillings  in  bills  of  the  old  tenor,  one 
piece-of-eight  or  a  dollar ;  for  eleven  shillings  and  three 
pence  of  the  middle  and  new  tenor,  the  same  coin ;  and 
so  in  proportion  for  greater  or  less  sums.  If  any  of 
such  bills  are  kept  back  for  a  year  after  the  time  desig- 
nated, they  are  to  be  irredeemable.  The  enactment  fm- 
ther  provides,  that  as  the  paper  system  is  to  be  dispensed 
with,  all  public  and  private  demands  contracted  after  the 
date,  fixed  for  recalling  the  treasury  notes,  shall  be  ac- 
counted as  payable  in  silver  com — estimated  at  6/8  for  an 
ounce.     It  appoints  that  what  the  specie,  to  be  received 

»  Mass.  Archives— Pecu.,  vol.  iii.  =  Mass,  Archives— Pecu.,  vol.  iii. 

"  Mass.  Provincial  Records.  "•  Mass.  Provincial  Records. 

16 


122 


HISTORICAL  ACCOUNT  OF 


1749  ^^'^^^  England,  lacks  of  paying  these  notes,  shall  be  can- 
- — ^"^  celled  by  a  tax.  It  appoints  a  penalty  for  taking  or  passing 
any  of  the  New  Hampshire,  Connecticut  and  Rhode 
Island  notes.  It  demands  a  renewal  of  the  practices  for 
innholders  and  all  officers  of  town  and  state,  with  retailers, 
to  take  oath  for  carrying  such  a  clause  into  effect.  The 
form  used  in  this  respect,  follows  : — "  You,  A.  B.,  do  in 
the  presence  of  God,  solemnly  declare,  that  you  have  not, 
since  the  last  day  of  March,  1750,  wittingly  and  wilhngly, 
directly  or  indirectly,  either  for  yourself  or  any  for  or 
under  you,  been  concerned  in  receiving  or  paying  within 
this  government,  any  bill  or  bills  of  credit  of  either  of  the 
governments  of  Connecticut,  New  Hampshire  or  Rhode 
Jan.   Island.     So  help  you  God." 

^^'  1  That  this  Act  may  have  its  proper  effect,  the  Legisla- 
ture petition  his  Majesty  respecting  the  adjacent  Colonies. 
They  say — "  nothing  can  prevent  the  measures  we  have 
taken  for  these  purposes,  proving  effectual,  unless  it  be  the 
currency  of  the  paper  bills  of  your  Majesty's  other  govern- 
28.    ments,  which  are  unhappily  interwoven  with  our  bills." 

2  Aware  that  such  a  law  bore  the  aspect  of  severity 
towards  New  Hampshire,  Rhode  Island  and  Connecticut, 
the  Governor  writes  an  explanation  of  its  reasons  to  the 
last  Colony.  He  says — "  We  could  not  avoid  prohibiting 
the  currency  of  the  bills  of  your  governments  among  us. 
Past  experience  having  convinced  us,  that  it  is  impractica- 
ble to  keep  silver  currency  among  us,  while  a  paper  cur- 
rency is  continued.  It  was  with  great  reluctance  that  we 
agreed  to  any  paragraphs  in  this  Act,  which  affected  the 
bills  of  other  goverimients,  especially  those  of  Connecticut, 
of  whose  good  disposition  we  are  so  well  apprized,  as  to 
make  no  doubt  of  their  contributing  their  utmost  efforts." 
31.  The  Act,  being  so  completed,  is  immediately  forwarded 
by  the  Secretary,  to  William  Bollan,  the 'Province  agent, 
for  the  Royal  sanction.  This  gentleman,  knowing  that  a 
April  bill  was  pending  before  the  House  of  Commons,  relative 
^-  to  the  Colonies'  legislation  on  currency,  petitions,  that  it 
may  be  arrested  as  inconsistent  with  their  Charter  rights, 

'  Mass.  Provincial  Records.  ^  Mass.  Archives— Pecuniary,  vol.  iii. 


MASSACHUSETTS  CURRENCY. 


123 


and  with  the  privileges  of  Englishmen.     lie  allows  that  j  749 
it    is    good  to   have   their  paper   money  stopped,   but   he  '■^^ — 
desires  that  it  may  be   done  by  themselves.     ^  He  again  J"''e 
repeats   similar   sentiments  on   this  subject  to  the  same 
Body.     He  says  that  if  they  pass  the   bill,  "  it  will  take 
from  the  inhabitants  of  the  Massachusetts  Bay,  not  only 
the  special   powers   and   privileges  they  enjoy  by   their 
Charter,  but  likewise  all  the  liberties,  they  hold  in  com- 
mon with  other  British  subjects." 

^As  a  sign  of  the  great  depreciation  of  bills,  we  have 
the  succeeding  distich,  which,  though  not  remarkable  for 
poetic  excellence,  tells  a  true  tale — 

"  The  country  maids  with  sauce  to  market  come, 
And  carry  loads  of  tattered  money  home." 

^  By  a  communication  from  Governor  Jonathan  Law  to  13 
Governor  Shirley,  it  appears  that  the  Assembly  of  Con- 
necticut had  voted  to  redeem  their  bills  and  levy  three 
rates  in  1751-2-3,  which  will  be  sufficient  to  call  them  all 
in,  "  and  all  fines,  fees  and  penalties  are  to  be  established 
in  Proclamation  money." 

■*  Another  communication  is  made  by  Mr.  Bollan,  to  our     SO. 
Legislature,  that   their  Act  for   drawing   in   their   paper 
by  means  of  the  money  expected  from   the   treasury  in 
London,  has  passed  the  Parliament,  and  was  approved  by 
the  King  on  the  28th. 

^Expressive  of  disinclination  on  the  part  of  many  to  Sept. 
the  redemption  of  our  paper  money  with  specie,  until  the 
adjacent  Colonies  come  into  a  similar  agreement,  is  the 
passage  of  a  letter  from  Jeremy  Allen  of  Boston  to  Samuel 
Waldo  in  London.  It  is — "  they  now  join  in  the  full  cry 
to  postpone  the  exchange  of  the  paper  for  dollars  till  such 
time  as  the  neighboring  governments  come  in." 

^  Governor  Shirley  being  on  the    point  of  sailing  for     11. 
England,  and  deeply  anxious  for  alleviating  the  miseries 

1  Mass.  Archives— Foreign    Rela-  *  Massachusetts     Archives  —  Let- 

tions,  vol.  i.  ters,  vol.  iii. 

^  Ames's  Almanac.  c  Massachusetts    Archives — Colo- 

^  Mass.  Archives — Colonial,  vol.  v.  nial    papers.     Boston    Weekly    Post 

'•  Mass.   Archives — Foreign   Rela-  Boy. 
tions. 


124  HISTORICAL  ACCOUNT  OF 

X 74 9,  of  a  suspected  and  depreciated  currency,  writes  to  his 
^^-^^^  Lieutenant,  Spencer  Pliips  : — "  You  will  excuse  me  if  I 
am  more  than  ordinarily  solicitous,  that  nothing  be  done 
in  my  absence  to  hinder  the  effect  of  the  Act  for  drawing 
in  the  bills  of  credit  of  the  several  denominations,  which 
have  at  any  time  been  issued  by  this  governmant  and  are 
still  outstanding,  and  for  ascertaining  the  rate  of  coined 
silver  in  this  Province  for  the  future.  Upon  which,  the 
honour  of  the  government  and  the  prosperity  of  the 
Province  do  so  much  depend.  For  besides  his  Majesty's 
express  instruction  not  to  repeal  any  Act  without  his  allow- 
ance, it  appears  that  his  Majesty  and  his  ministers  have 
relied  upon  the  faith  of  this  government,  plighted  in  this 
Act,  that  they  will  use  the  money,  granted  by  Parliament 
for  putting  an  end  to  the  paper  currency  in  the  manner 
provided  by  that  Act.  And  it  seems  as  if  it  were  in  this 
confidence,  that  the  money  is  at  last  put  into  the  hands 
of  our  agent." 
Sept.  '  The  Evening  Post  of  Boston,  informs  the  public  that 
^^'  the  specie,  paid  by  the  Crown,  had  arrived,  under  the 
care  of  Mr.  Bollan.  While  the  General  Court  were  de- 
bating the  question,  whether  they  would  redeem  their 
paper  with  this  money,  the  inhabitants  were  generally 
indifferent,  because  they  viewed  the  plan  as  chimerical, 
and  not  likely  to  be  realized ;  but  when  they  heard  that 
Parliament  had  granted  the  reimbursement  on  condition 
that  it  be  applied  for  such  a  redemption,  discontent  began 
to  show  itself.  This  mon^y  consisted,  653,000  oz.  of 
silver  and  10  tons  of  copper.  There  is  reason  to  believe, 
that  this  was  more  coin  than  had  ever  been  in  Massachu- 
setts before  at  the  same  time.  Such  a  remittance  and 
other  subsequent  ones,  in  connection  with  the  prohibition 
of  bills  of  credit  here,  gave  our  Province  the  name  of  the 
"hard  money  Colony." 
Nov.  2  jjis  Honor  congratulates  the  Council  and  House  on 
^^'  the  arrival  of  the  reimbursement.  In  reference  to  this  sum, 
he  remarks — "  Whereby  we  are  enabled  in  a  good  measure 


'  Boston  Evening   Post.     Minot.  -  Massachusetts     Provincial     Re- 

Hutchinson.  cords. 


MASSACHUSETTS  CURRENCY. 


125 


to  pay  off  the  great  debt  contracted  by  the  charge  of  the  1749 
late  war,  and  now  lying  on  this  Province.     And  witli  the  — '^^ 
blessing  of  God  npon  our  wise  and  faithful  management 
of  this  advantage,  deliver  this  Province  from  the  evils  and 
mischiefs  (particularly  the  injustice  and  oppression)  arising        • 
from  the   uncertain  and  sinking  value  of  the  paper  me- 
dium."    He  advises  the  Court  to  fulfil  their  law  for  so 
desirable  a  purpose. 

^  Though  absent,  Governor  Shirley  takes  a  deep  interest   Nov. 
in  our  pecuniary  concerns.     Let  his  own  words,  as  sent 
from  London,  be  given  : — ''  I  look  upon  getting  an  Act  of 
Parliament  passed,  as  early  as  possible,  for  bringing  the 
neighbouring  Colonies  under  the  like  obligation  with  our- 
selves, to  put  an  end  to  their  paper  currency,  to  be  of  the 
utmost  importance   at  this  crisis ;  as  it  seems  to   be   the 
only  sure  method  of  preventing  Rhode  Island,  New  Hamp- 
shire and  Connecticut  from  drawing  away  our  silver  coin 
in  exchange  for  the  Massachusetts  bills,  which  they  are 
and  shall  be  possessed  of,  and  leaving  their  bills  to  sink 
in  the  hands  of  the  people  of  our  own  Province — an  evil, 
which,  besides  the  loss  it  will   bring  upon  our  people,  in 
whose  hands  those  bills  must  finally  sink  to  nothing,  may 
so  far  lessen  our  silver,  as  to  make  it  insufiicient  for  a 
medium  within  the  Province."     He  adds — "  The  gentle- 
men of  the  Council  and  House  of  Representatives  may 
therefore  be  assured  of  my  unwearied  endeavours  to  guai-d 
against  those  mischievous  consequences  to  the  Province, 
by  forwarding,  (as  far  as  in  me  lies,)  a  suitable  Act  of 
Parliament  for  that  purpose,  towards  preparing  the   way, 
for  which  I  have  already  waited  upon  the  Speaker  of  the 
House  of  Commons,  who  was  pleased  to  tell  me,  that  he 
expected  to  hear  from  me  soon  in  Parliament  upon  the 
affair  of  the  paper  cm'rency  ;  that  he  should  be  extremely 
glad  to  know  my  sentiments  upon  it ;  and  that  I  might 
the  more  fully  draw  them  up,  proceeded  to  acquaint  me 
with  the  objections  insisted  upon  against  putting  an  entire 
end  to  the  issuing  of  bills  of  credit  in  New   England,  and 
particularly  with  his  own  difficulties  in  that  point,  with 

'  Massachusetts  Archives — Colonial,  vol.  v. 


126 


HISTORICAL  ACCOUNT  OF 


1749.  his  sentiments  in  general  upon  the  subject  of  a  paper  cur- 
"""""^  rency  in  the  Colonies.     This  took  up  near  an  hour,  and  I 

was  surprized  a  little  to  observe  by  what  dropt  from  him, 
that  two  or  three  principal  gentlemen,  whose  assistance  I 
thought  might  be  depended  upon  for  abolishing  paper 
currency  in  New  England,  seemed  of  late  to  have  slack- 
ened in  their  sentiments  upon  it.  However,  I  shall  pro- 
ceed to  draw  up  my  sentiments  upon  the  state  of  the 
New  England  paper  currency  in  the  most  explicit  manner 
for  the  Speaker,  and  to  frame  a  proper  bill  to  accompany 
them,  both  of  which  shall  be  communicated  likewise  to 
those  gentlemen,  I  have  before  hinted  at.  And  I  have 
great  reason  to  hope,  that  what  I  shall  offer,  may  have 
some  influence  with  the  Speaker  and  Board  of  Trade,  and 
be  duly  considered  in  Parliament.  In  the  mean  time,  to 
prevent  the  mischiefs  which  may  arise  for  want  of  this, 
till  it  can  be  efiectually  done,  I  shall  endeavor  to  obtain 
his  Majesty's  leave  for  the  Lieutenant  Governor  to  consent 
to  an  Act  of  Assembly  for  protracting  the  time,  stated  by 
law,  for  calling  in  the  money,  as  is  proposed  in  your 
letter.  I  shall  also  endeavour  to  obtain  his  Majesty's  leave 
for  issuing  a  proper  quantity  of  bills  of  a  low  denomina- 
tion upon  the  foot  proposed  in  your  letter,  to  supply  the 
Province  with  money  to  serve  in  common  dealings  for  the 
petty  articles  in  the  daily  necessaries  of  life ;  concerning 
which,  I  should  have  been  glad  if  you  had  specified  the 
proposed  denominations  of  the  bills,  and  mentioned  the 
quantity  of  them  requisite  for  the  Province's  service." 

1750.  1  An  expectation  of  having  bills  exchanged  for  specie, 
^f^'    led  many  to  hoard  them  up.     This  made  it  very  difficidt 

for  the  Collectors  of  taxes  to  get  the  dues  for  the  Prov- 
ince. Therefore  they  are  allowed  more  time  to  settle 
their  demands. 
18.  2  ^s  deductions  had  been  made  from  the  reimbursement, 
paid  from  the  Royal  exchequer,  and  specified  in  the  Act 
of  our  Court  for  redeeming  their  notes,  another  law  is 
passed  to  confirm  such  an  Act. 

1  Massachusetts   Archives— Pecu-  "  Massachusetts    Provincial     Re- 

niary,  vol.  iii.  cords. 


MASSACHUSETTS  CURRENCY.  ]  27 

^  A  Committee  of  the  Legislature  report,  that  in  order  1750. 
to   prevent  farthings  and   coined  silver,  and  gold,   from  ^^J^ 
passing  at   a   proportionably  high(!r   rate  than    a  milled     27. 
dollar  at  6%  £3,000  worth  of  small  bills,  denominated,  l*", 
2'^,  3*^,  ^'\  0'',  9*^,  IS'',  be  struck  ofl".     This  proposal  is 
accepted. 

-As  an  indication  how  much  the  public  mind  was  Feb. 
drawn  to  the  subject  of  converting  our  paper  currency 
into  that  of  specie,  the  ensuing  lines  ai-e  quoted.  They 
are  from  a  dialogue,  entitled,  "A  Touch  of  the  Times." 
The  personae  are  Honestus,  a  country  trader,  and  Politicus, 
a  merchant — 

Honestus. 

"  Why,  Sir,  to  tell  the  truth  I'm  come 
To  bring  some  paper  trash  to  Town 
To  pay  my  debts ;  for  I  do  fear 
I  shan't  be  able  'nother  year." 

Politicus. 
"  When  once  the  Dollars  shall  come  out, 
Ther'l  be  no  want  of  money  then, 
Eager  you'l  catch  the  glitt'ring  Coin, 
And  bless  the  golden  era  when 
This  paper  trash  is  no  more  seen." 

Honestus. 
"Ah,  Sir,  we  hear  the  Province  bills 
Do  lye  recluse  within  the  tills 
Of  some  great  men,  to  wait  the  time 
The  dollars  sliall  the  same  redeem. 
And  what  is  worse  than  all,  'tis  said 
To  foreign  lands  they'l  be  convey'd. 
Then  what's  our  fate — the  silver  gone — 
The  paper  burnt — and  we  undone." 

^Apprehensive  from   the  unsettled   condition  of   their  ^prji 
currency,   lest   coin   may   rise   above   its   real   value,   as     2. 
proportionate  to   Spanish  milled  pieces-of-eight  at  6',  the 
Legislature  order  the  succeeding  rates  to  be  henceforth 
established  among  the  inhabitants: — A  guinea,  28';    an 

'  Mass.  Provincial  Records.  -'  Massachusetts    Provincial     Re- 

-  Boston  Weekly  News  Letter.  cords. 


128 


HISTORICAL  ACCOUNT  OF 


1750.  English  crown,   6/8;  an  English  shilling,  1/4;  a  double 
"■^^'"^  Johannes  or  gold  coin  of  Portugal,  £4  16' ;  a  moidore,  36' ; 

a  pistole  of  full  weight,  22' ;  three  English  farthings,  1*^ ; 
and  parts  of  these  coins  at  a  similar  rate  ;  old  tenor  bills  to 
be  paid  at  the  rate  of  45'  for  6'  of  specie  ;  and  those  of  the 
middle  and  new  tenors  at  11/3  for  6'.  ^  Commissioners  ^ 
for  redeeming  the  Province  bills,  commence  their  labor. 
Orders  from  them  on  the  Treasurer,  are  to  be  paid,  so 
as  to  have  3"^  of  copper  half-pence  and  farthings  on  every 
pound,  and  so  proportionably  to  the  sum  exchanged  ;  and 
if  any  desire,  they  can  have  3*^  in  bills  for  small  change 
at  the  same  rate,  with  pillared  and  milled  money.  They 
are  empowered  to  receive  of  residents  in  Massachusetts, 
the  notes  of  Connecticut,  Rhode  Island  and  New  Hamp- 
shire, who  take  oath,  that  they  had  such  money  before 
April,  1750,  and  that  they  have  not  purchased  them  of 
people  belonging  to  those  Colonies  with  silver,  since 
March  30  of  the  same  year.  In  case  that  bills  of  such 
Colonies  be  presented  for  commutation  and  belong  to  their 
inhabitants,  the  Commissioners  may  change  them  for 
Massachusetts  bills,  if  there  be  enough  to  do  this,  and 
these  or  silver  shall  be  handed  to  the  persons,  who  offered 
the  paper  of  those  Colonies. 
April  3  ^  disciple  of  Thalia,  in  anticipation  of  much  greater 
^^'  benefits  from  the  change  making  in  the  currency,  than 
were  actually  realized — and  this  is  the  experience  which 
results  from  the  most  of  temporal  anticipations — thus  gives 
scope  to  the  feelings  of  his  inspiration : 

"And  now,  old  tenor,  fare  you  well, 
No  more  such  tattered  rags  we'l  tell. 
Now  dollars  pass  and  are  made  free. 
It  is  a  year  of  Jubilee  ; 
Let  us  therefore  good  husbands  be, 
And  good  old  times  we  soon  shall  see." 

1751.  4  It  having  been  discovered  that  pistareens  and  larger 

^^^-   and  smaller  pieces  of  the  same  stamp,  had  been  imported 
14.  ^ 

1  Exchange  Books.  of  the   House.     John   Quincy  and 

*  James  Allen,  Andrew  Boardman,      Ezekiel  Cheever,  of  the  Council. 
James  Russell  and  Thomas  Foster,  ^  Boston  Weekly  News  Letter. 

4  Massachusetts  Provincial  Records. 


MASSACHUSETTS  CURRENCY.  ]29 

among  the  specie  from  London,  and  paid  out  of  the  trea-  1751. 
sury  for  Province  notes,  an  order  is  issued,  that  all  such  ^^-"-^^ 
money  considered  of  greater  alloy  than  others,   shall  be 
retained  until  further  action  of  the  Coiu't.     Here  we  are 
introduced  to  coins,  which  became  current  and  are  familiar 
to  the  memory  of  many. 

^  To  suppress  the  outbreakings  of  disaffection  with  the 
exchanging  of  the  Province  bills  by  order  of  the  government, 
a  Riot  Act  is  passed.  This  law  resembled  one  of  Parlia- 
ment, with  some  change  in  the  penalty. 

The  Treasurer  is  instructed  to  pay  out  hammered  or  f'eb. 
cobb  money  at  6/8  oz.  with  milled  dollars,  in  proportion  to 
the  amount  of  each  in  his  hands.  While  this  process  of 
redemption  is  going  on,  money  is  very  scarce.  A  memo- 
rial is  laid  before  the  Assembly,  stating  that  its  subscribers 
are  unable  to  obtain  either  paper  or  coin,  for  their  work  or 
wares,  and  therefore  cannot  pay  their  taxes ;  for  which 
their  property  is  seized  and  vended  from  one  fourth  to  one 
tenth  of  its  value.  For  such  reasons  they  pray,  that 
relief  may  be  granted  them  in  the  premises. 

2  Edward  Cornwallis,  Governor  of  Nova  Scotia,  had  27, 
applied  to  Massachusetts  for  aid  against  the  Indians  in  his 
neighborhood.  Lieut.  Governor  Spencer  Phips,  sends  him 
the  succeeding  reply  : — "  I  am  heartily  sorry  that  nothing 
could  be  obtained  at  this  time  from  our  General  Court. 
The  difficulties  we  are  under  by  reason  of  the  change  of 
our  currency,  it  is  thought  had  some  influence.  It  is  the 
opinion  of  the  wisest  and  best  men  among  us,  that  the 
change  of  the  medium  from  bills  of  credit  to  money,  will 
be  much  for  the  general  benefit  of  the  Province  ;  yet 
there  are  great  numbers  of  people  that  are  much  too 
strongly  attached  to  the  paper  currency,  and  it  happening 
at  this  time  that  the  bills  being  mostly  called  in,  and  the 
silver  not  yet  circulating  in  the  several  parts  of  the  Prov- 
ince, a  great  stagnation  of  business  ensued.  And  at  the 
very  time,  when  your  affair  was  under  consideration,  we 
had  rumours  that  many  hundreds  of  people  were  coming 
to  the  General  Court  with  a  petition  for  making  more 

'  Mass.  Provincial  Records.  *  Mass.  Archives — Colonial,  vol.  iv. 

17 


130 


HISTORICAL  ACCOUNT  OF 


1751.  paper  money,  and  about  three  hundred  men  were  actually 
-^-^^  assembled   within   less    than   three   miles   of    the    town. 
However,   all    the  effect  of  it   was,  the  passing  a  good 
wholesome  law  against  riots,  which  could  never  before  be 
obtained."     Another  passage  in  this  letter,  marked  over 
with  lines  of  ink,  shows  the  public  feeling  as  to  another 
topic.     It  follows  : — Many  "  are  dissatisfied  with  the  pres- 
ent  remarkable  decay  of    Trade,  which   is  supposed  to 
arise  from  the  breaking  off  our  correspondence   in  a  great 
measure  with  our  neighboring   Colonies,  by  interdicting 
the  passing  of  their  bills  among  us,  and  their  receiving 
our  silver  in  exchange  for  the  Massachusetts  bills  in  their 
hands,  for  we  are  now  gotten  within  a  few  weeks  of  the 
very  crisis  of  this  great  affair,  when  by  law,  bills  of  credit 
are  no  longer  to  pass  among  us." 
April       1  To  put  down  the  various  demonstrations  of  opposition 
^^'    to   the   plan   for   exchanging    the   paper   currency,    both 
Houses  give  their  immediate  attention,  as  in  the  ensuing 
case  : — Robert  Howland  of  Duxborough,  and  Fobes  Little 
of  Little  Compton,  "are  suspected  of  publishing  and  dis- 
persing a  printed  paper,   containing  sundry  expressions, 
tending  to  bring  into  contempt  and  subvert  the  constitu- 
tion of  this  government."     From  depositions  in  reference 
to  this  subject,  these  persons  were  concerned  in  having 
verses  printed  in  Rhode  Island,  "  containing  a  lamentation 
for  the  death  of  old  tenor,  having  very  hard  reflections  on 
the    General  Court."     That  these   individuals  might  be 
made  an  example  so  as  to  deter  many  others,  who  sided 
with  them,  the  Representatives  and  Council  vote,  that  Mr. 
Phips  issue  a  Proclamation,  offering  a  suitable  reward  for 
their  apprehension.     A  great  ^  cause  of  prejudice  agamst 
the  redemption  of  paper  currency  and  its  cessation  was, 
that  those  who  depended  on  their  labor  for  support,  sus- 
pected, that  while  the  wealthy  would  hoard  up  the  silver 
and  gold,  they  should  have  none  of  it,  and  should  be 
worse  off  than  under  the  system  of  Province  banking. 
This  led  to  several   tumultuous  assemblies  in  and  near 
Boston.     A  large  number  of  people  from  Abington  and 

>  Masaachusetts  Archives— Pecuniary,  vol.  iii.  ^  Hutchinson. 


MASSACHUSETTS  CURRENCY. 


131 


other  towns  came  to  the  metropoHs  with  riotous  intcn- 175 ^^ 
tioiis.     They  expected  to  be  joined  here  by  a  large  party.  '■^^-^^^ 
But  they  were  disappointed.     Their  courage  cooled,  and 
their  purpose  was  relinquished  by  the   hoots  of  boys  and 
servants,  who  drove  them  back. 

To  supply  a  medium  of  exchange,  a  bill  passes  for  the  April 
Treasurer  to  issue  certificates,  on  interest,  to  be  paid  by 
December  31,  1751.  His  Honor  declines  signing  it,  be- 
cause such  paper  is  not  legal  tender,  will  drive  specie  from 
the  market,  become  reduced  in  value,  promote  injustice, 
and  is  contrary  to  Royal  instructions.  For  the  same  rea- 
sons, Andrew  Oliver  and  Thomas  Hutchinson  had  recently 
dissented  from  a  vote  of  the  Council  on  this  subject. 
These  gentlemen  had  a  strong  repugnance  to  any  means 
for  supplying  the  want  of  currency,  which  had  any  resem- 
blance to  the  paper  system,  from  Avhich  they  hoped  the 
Province  would  entirely  extricate  itself. 

On   further   consideration   of    the    matter,    with   some     26, 
modification,  Mr.  Phips  consents  to  the  issue  of  treasury 
notes  for  money,  borrowed  for  the  Province  on  interest. 
This  precedent   became   a   practice.      Similar   securities 
were  contiimally  issued   to  meet  the  disbursements  of  the 
government.     Though  it  passed  in  business,  on   special 
agreements,  yet  it  was  not  allowed  to  be  legal  tender.     It 
was  emitted  from  the  treasury  till   the   Revolution,  and 
was  then  soon  renewed  under  a  different  administration. 
'     The  Commissioners  appointed  to  exchange  the  public  June 
notes   for   specie,   close    their    labors.       They   redeemed     3. 
£50,705  6^  8^  in  bills  of  the  old  tenor,  £38,431  P  of  the 
middle,  and  £1,703,099  11'  5^  of  the  new  tenor,  making 
an  amount  of  £1,792,236  5'  1*^  at  the  rate  of  about  one 
in  specie  for  ten  of  paper.     This  was  nearly  all  that  was 
out.     For  years,  petitions  continued  to  be  laid  before  the 
Legislature,  that  parcels  of  them  discovered  in  old  desks, 
bottoms  of  leather   chairs,    and   other   private   places  of 
deposite,  might  be  allowed  and  exchanged. 

Thus  the  conquest  of  Louisbourg  not  only  wrested  a 
strong  hold  from  enemies,  but,  also,  furnished  the  means 
of   freeing  this  Province  from  one  of   its  most  prolific 


132  HISTORICAL  ACCOUNT  OF 

1751.  sources  of  anxiety,  contention,  crime,  and  calamity.  The 
"'^"^'  emission  of  notes  from  the  Treasury,  whether  as  loans,  or 
payments  of  annual  expenses  of  Government,  was  an  in- 
cessant cause  of  difficulties  between  the  Chief  Magistrate 
and  popular  branch  of  the  Legislature.  If  ever  men  had 
cause  to  exclaim,  in  reference  to  paper  currency,  "  The 
love  of  money  is  the  root  of  all  evil,"  it  was  Dudley, 
Shute,  Burnet,  Belcher  and  Shirley.  This  proved  to 
them  an  opponent  of  Brierius  power.  It  was  among  the 
principal  causes,  which  raised  the  question  of  Parlia- 
mentary jurisdiction  over  this  Province,  as  well  as  others, 
and  paved  the  way  to  an  open  rupture  with  the  parent 
government.  In  producing  such  an  important  alteration 
in  the  pecuniary  concerns  of  Massachusetts,  Thomas 
Hutchinson  stood  in  the  front  rank,  and  acted  a  prominent 
part.  ^  The  remark  he  subsequently  made  to  a  ^corres- 
pondent in  England,  was  amply  justified  by  his  conduct. 
''  I  think  I  may  be  allowed  to  call  myself  the  father  of 
the  present  fixed  medium,  and,  perhaps,  have  a  natural 
bias  in  favour  of  it." 

One  fact,  derived  from  a  review  of  the  paper  money 
system  to  this  period,  is  that  large  and  frequent  emissions 
of  it,  not  redeemable  till  several  years,  and  then  not  punc- 
tually paid,  is  no  addition  to  the  real  medium  of  trade, 
which  existed  when  such  a  course  commenced.  A  prom- 
inent reason  for  this  inference  is,  that  as  the  bills  of  credit 
were  thus  multiplied,  so  they  diminished  in  value,  and 
drove  almost  all  the  coin  from  the  market.  ^  The  tendency 
of  such  paper,  with  regard  to  itself,  is  much  like  what 
any  article  of  commerce  has  on  its  own  price,  when 
thrown  out  for  sale  in  too  large  quantities.  In  Holland, 
it  was  formerly  the  case,  that  when  there  was  too  large 
an  importation  of  spices,  it  was  found  expedient  to  destroy 
part  of  them,  so  that  the  remainder  might  bring  more 
than  the  whole  would,  if  preserved. 

In  1740,  Virginia,  perceiving  that  their  tobacco,  which 

'  MassachuseUs  Archives — Hutch-       Eng-land,  dated  Dec.  14,  1761. 
inson's  correspondence.  ^  Discourse  on  Colonial  currencies. 

*A   letter  of  his   to  a  friend   in 


MASSACHUSETTS  CURRENCY.  J  33 

constituted  part  of  their  cnrrcncy,  began  to  depreciate  in  175]. 
value,  passed  a  law  restricting  1,000  pounds  of  it  annually,  --^'— 
to  each  "  tythable."  For  a  similar  purpose,  Maryland,  in 
1734  and  5,  ordered  150  pounds  of  it  "per  rateable,"  to 
be  consumed.  Indeed,  it  must  be  plain  to  every  observ- 
ing mind,  that  excess  in  paper  money,  emitted  on  any 
promises  and  securities,  like  excess  in  every  thing  else,  is 
injurious  to  community  just  in  the  proportion,  that  it  is 
more  than  their  necessities  and  conveniences  require. 

^  That  the  American  Colonies  might  not  fall  again  into  June 
the  course  they  had  done,  in  respect  to  issues  of  bills  of 
credit,  Parliament  enacted  a  law.  This  instrument  forbid 
such  money  to  be  passed,  except  for  current  expenses  of  the 
Government  each  year,  and  of  invasion  by  an  enemy ;  but 
never  as  a  legal  tender  for  debts.  That  its  requisitions 
might  be  complied  with,  any  Governor  who  should  con- 
sent to  a  rule  of  different  signification  on  this  subject, 
should  be  dismissed  from  office,  and  ever  after  be  ineligi- 
ble to  public  employment. 

While  this  subject  was  under  consideration,  able  and 
interesting  memorials  against  such  a  statute  were  pre- 
sented by  agents  of  New  England.  It  was  deprecated  by 
the  people  here,  not  so  much  for  its  immediate  purpose,  as 
for  its  relative  influence  to  bring  them  more  under  the 
control  of  the  Crown,  and  to  impair  the  remaining  liber- 
ties of  their  Charter. 

2  Relative  to  such  a  statute,  Mr.  Bollan  writes  to  our  July 
Representative.  "  The  paper  currency  Bill  was  attended  ■^^• 
Avith  great  difficulties.  I  had  conceived  hopes,  that  a 
good  Bill  would  have  been  agreed  on  before  it  was  moved 
in  the  House;  but  the  design,  which  was  at  first  con- 
cealed, of  putting,  by  Act  of  Parliament,  the  credit  of  the 
Colonies  wholly  under  the  power  of  an  Instruction,  pre- 
vented it ;  or,  at  least,  it  appeared  to  me,  this  was  the 
chief  reason  for  some  of  the  principal  managers  pro- 
ceeding as  they  did.  This  design,  which  had,  I  am 
satisfied,  been  formed  by  some  persons  of  consequence, 

'  Journal  of  the   House  of  Com-  "  Massachusetts    Archives  —  For- 

mons.  eign  Relations,  vol.  i. 


134  HISTORICAL  ACCOUNT  OF 

1751.  was  conducted  with  great  art.  When  the  Bill  in  1748 
■  "^^  was  brought  into  the  House,  for  enforcing  the  King's 
orders  and  instructions,  that  being  brought  against  all  the 
Colonies,  and  to  enforce  all  the  King's  orders  and  instruc- 
tions whatsoever,  whereby  the  Constitution  of  the  Colonies 
would,  I  think,  have  been  wholly  subverted,  and  a  des- 
potic power  vested  in  the  Crown.  That  was  plainly  such 
an  unconstitutional  attempt,  that  it  could  not  be  main- 
tained and  supported,  when  fully  explained  and  laid  open  ; 
whereas  this  Bill,  brought  in  against  part  of  the  Colonies, 
was  to  put  only  one  single  article  under  the  King's  in- 
struction, and  the  King,  by  his  prerogative,  having  greater 
power  over  money,  than  over  most  other  matters,  and 
bills  of  credit  having  been  used  in  the  Colonies  as  money, 
it  was  apprehended,  that  this  might  more  easily  pass,  and 
being  once  passed,  would  serve  for  introducing,  by  de- 
grees, the  King's  instructions  to  control  other  articles, 
and  so  would  have  been  a  very  dangerous  precedent.  It 
was  moreover  urged,  that  there  had  been  great  abuse  in 
this  article,  in  particular,  in  the  Colonies,  and  that  they 
had  disregarded  the  orders  issued  upon  address  to  his  Ma- 
jesty from  Parliament,  and  there  was  a  necessity  of  laying 
a  restraint  on  the  Colonies,  and,  also,  of  reposing  a  trust 
somewhere ;  and  that  it  could  not  be  so  well  placed  any 
where  in  this  case,  as  in  the  Crown.  Thereupon,  I 
thought  it  my  duty  to  oppose  the  Bill  to  the  utmost." 

Notwithstanding  the  exertions  of  our  Government,  as 
well  as  that  of  England,  to  exclude  bills  of  other  Colonies 
from  ours,  still  they  are  not  altogether  effectual. 
Oct.  ^  In  reference  to  the  recent  law  of  Parliament  concerning 
the  currency  of  this  country,  Mr.  Phips  writes  as  follows 
to  the  Lords  of  Trade.  "  I  have  received  the  Act  of  Parlia- 
ment for  regulating  the  currencies  of  the  Governments  in 
New  England,  and  I  am  glad  I  can  inform  your  Lordships, 
that  there  is  a  general  disposition  in  the  inhabitants  of  this 
Province  to  conform  to  it,  which  I  hope  will  continue, 
unless  the  example  of  any  of  the  other  Governments  in 
evading  the  force  and  intent  of  the  Act  should  prevent  it." 

'  Massachusetts  Archives  —  Letters,  vol.  iv. 


9. 


MASSACHUSETTS  CURRENCY. 


135 


^  As  evidence  that  the  products  of  the  Commonwealth  1751 
are  still  current  at  the  Treasury  for  taxes,  a  committee,  ^^ 
consisting    of  the    eldest  Counsellor  from   each  County,     10. 
and  the  Treasurer,  are  appointed  to  set  the  prices  of  such 
ai'ticles. 

Having  given  the  ~  rates  at  which  the  bills  of  credit 
were  appraised,  to  1727,  we  now  proceed  to  offer  the  fol- 
io win  i 


ig- 


£ills  were  in  > 
propuniun  ofy 


for  one  oudcq 

t  silver. 


16/6,  17/,  and  IS/,         ^ 

19/,  19/6,  20/,  21/,  22/ 

21/,  20/  and  19/ 

18/6  and  19/ 

19/6,  20/  and  20/6 

21/,  21/6,  22/,  22/6  and  23/ 

24/,  25/,  26/,  26/6  and  27/ 

27/6 

27/,  26/6 

26/6,  27/ 


28/,  29 


28/ 


35/,  36/,  37/ 

37/,  38/,  40/ 


60/ 


^  With  regard  to  the  bills  of  other  Colonies,  the  Lieu-   Dec. 
tenant   Governor    expresses   himself  in   the    subsequent    ^^• 


'  Journal  ol'  the  House. 
-  See  page  b3. 


■^  Massachusetts 
ords. 


Provincial    Rec- 


136  HISTORICAL   ACCOUNT   OF 

1751.  terms.     "I  must  contmue  to  recommend  to  yon,  to  keep 
^■^"""^  a  constant  eye  upon  the  state  of  the  Treasmy,  and  of  the 

current  money  or  medium  of  trade  of  the  Province.  With 
respect  to  the  latter,  I  have  been  informed,  that  some 
persons  venture  to  run  the  risque  of  the  penalty  of  the 
law,  and  presume  to  receive  and  pass  the  bills  of  credit  of 
the  neighboring  Governments ;  which  mischievous  prac- 
tice, if  in  any  measure  connived  at,  will  probably  spread, 
and  be  attended  with  very  bad  consequences.  I  have 
done  what  I  thought  necessary,  on  my  part,  and  with  the 
advice  of  his  Majesty's  Council,  have  issued  a  Proclama- 
tion, requiring  all  whom  it  concerns,  faithfully  to  do  their 
duty  in  prosecuting  all  offenders  against  this  Act." 

1752.  ^  A  question,  jiroductive  of  many  debates,  of  prolonged 
Dec.  legislation,    and    many   spirited    remarks,    begins   to   be 

agitated  in  the  General  Court.  It  was,  whether  gold 
should  be  a  legal  tender,  as  well  as  silver.  Its  settlement 
will  be  mentioned  in  its  chronological  place. 
J  7  5  3  In  reference  to  coins  which  had  been  sent  with  the 
April  reimbursement  from  the  Royal  Exchequer,  their  value  is 
now  appointed.  Being  whole  and  half  pistareens,  they 
are  to  pass  at  the  rate  of  14^*^  for  the  former. 

11_  ^  Though  tlie  Province  paper  had  closed  its  currency  as 
a  legal  tender  in  traffic  concerns,  yet  it  was  not  all  re- 
deemed at  the  Treasury.  The  officer  of  this  department 
shows  by  his  account,  that  £131,996  3  9  of  it,  in  old 
tenor,  and  equal  to  £17,599  9  9,  is  still  in  the  hands  of 
the  people.  In  this  comiection,  he  states,  that  a  com- 
mittee of  the  Legislature  had  burnt,  at  the  Town  House, 
such  paper  to  the  amount  of  £1,792,236  5  1.  To  those 
who  earnestly  sought  the  extermination  of  such  currency, 
it  was  a  fire  of  joy — but  to  the  many,  who  cast  longing 
and  lingering  looks  for  its  continuance,  it  was  a  fire  of 
sorrow. 

13,  2  Not  only  was  this  imputed  occasion  of  Provincial 
distress — though  it  appeared  to  be,  in  a  great  measure,  a 
necessary  evil — thus  put  away  from  being  an  object  of 

>  Journal  of  the  House.  ^  Journal  of  the  House. 

'^  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY.  ]  37 

temptation,  but  also,  the  very  plates,  which  ushered  them  i753. 
upon  conununity,  were  formally  destroyed  by  a  Legislative  -^^^^ 
committee. 

1  Governor  Shirley,  who  had  great  iiiUucnce  in  changing  Dec. 
the  character  of  the  currency,  makes  the  ensuing  remarks.  5. 
"  It  is  a  great  pleasure  to  me  to  find  the  happy  effects  of 
the  reimbursement  granted  by  Parliament- of  our  charges, 
expended  in  the  reduction  of  Cape  Breton,  which  hath 
brought  us  back  to  a  silver  medium,  the  only  natural  and 
genuine  one,  both  for  private  commerce  and  the  public 
business  of  the  Government,  and  delivering  us  from  the 
many  mischiefs  attending  a  paper  currency,  especially  as 
it  has  been  of  late  years  unhappily  managed  in  tlie  several 
Provinces  and  Colonies  of  New  England.  Yet  I  am 
much  concerned  to  find,  that  notwithstanding  all  the  bills 
of  credit  ought  to  have  been  long  before  this  time,  drawn 
in  and  exchanged  for  silver,  yet  some  of  them  are  still 
suffered  to  be  outstanding.  I  must  therefore  recommend 
it  to  you  to  fix  as  short  a  period  as  conveniently  may  be, 
from  this  time,  for  putting  an  end  to  the  currency  of  the 
bills  still  outstandhig,  and  to  concert  proper  measures  for 
keeping  the  silver  and  gold  within  the  Province.  Among 
other  methods  for  that  purpose,  I  would  recommend  to 
you  to  give  some  encouragement  to  the  raising  of  wheat, 
and  other  English  grain  within  the  Province,  as  our  pur- 
chasing it  from  the  neighbouring  Colonies,  contributes 
greatly  towards  draining  us  of  our  coin." 

'^  To  quicken  the  memory  of  those  who  encouraged  the     27. 
passing  of  the  notes  of  adjacent  Colonies,  as  to  the  prohi- 
bition of  such  a  practice,   an  Act  is  renewed  to  prevent 
this  sort  of  currency.     Such  preventives  were  repeatedly 
adopted  by  the  Assembly  till  the  Revolution. 

^x\s  the  last  particular  mention  of  the  Province  bihs  of  1754. 
credit,  we    have  a  published   notice  of  Harrison   Gray,    ^"^^ 
Treasurer.     He  states  that  all  of  them  still  out,  must  be 
brought   to  him  for  being  exchanged  by  the  first  day  of 
next  June,  or  be  forfeited ;  and  if  subsequently  passed,  a 

'Journal  of  the  House.  ^  jjygton    Weekly    News    Letter. 

^Journal  of  the  House. 

18 


J  38  HISTORICAL  ACCOUNT  OF 

1754.  fins  is  to  be  imposed  of  £10  for  each  offence.    He  also  no- 
'"^  tifies,  that  the  quarters,  halves,  and  three  quarters  of  such 

paper  must  be  presented  at  the  Treasury  by  the  first  of 
the  succeeding  March,  or  else  be  irredeemable. 
Pec.  ^  Occasionally  the  eftects  of  the  Provincial  banking 
10-  system  come  before  the  Assembly.  They  order,  that,  as 
lands  and  buildings  in  several  counties  are  still  mortgaged 
for  loans,  and  a  settlement  of  these  contracts  not  made  as 
expected  and  agreed,  the  trustees  are  instructed  to  sue  the 
debtors. 

1755.  ^Having  no  paper  medium,  except  Province  securities, 
•^^"-    and  there  being  little  of  other  money  in  circulation,  the 

Government  find  it  very  difficult  to  realize  specie  for  their 
notes.  Governor  Shirley  observes  to  the  Representatives, 
"  For  remedying  this  evil,  I  would  earnestly  recommend 
to  you,  gentlemen,  that  such  monies  as  persons  may  ad- 
vance may  be  exempted  from  being  taxed  in  the  usual 
assessments.  This  has  been  the  constant  practice  of  the 
Parliament  of  Great  Britain,  and  has  been  found  by  long 
experience,  to  be  a  happy  expedient  for  seasonable  supplies 
of  money  in  the  public  exchequer  there." 
March      ^  As  large   quantities  of  counterfeit  half  pence,  of  base 

^^'  metal,  had  been  imported,  and,  with  French  and  other 
small  copper  coin  continually  increase,  a  committee  are 
ordered  to  report  measures  to  prevent  such  practices. 

29.  ^Finding  it  impracticable  to  hire  what  silver  they 
needed,  on  the  faith  of  their  notes.  Government  vote  for 
their  agent  in  London  to  negotiate  a  loan  of  £23,000 
sterling,  for  six  years,  at  lawful  interest.  They  were 
constrained  to  adopt  this  method  several  times,  in  order  to 
meet  their  engagements. 
June        ^  By  an  Act  for  supplying  the  Treasury,  it  appears,  that 

^^-  the  people  are  still  allowed  to  have  their  agricultural  and 
mechanical  products  pass  for  Provincial  rates.  For  such 
an  exchange,  ''good  merchantable  Isle  Sable  Cod  Fish," 
is  also  taken. 

1  Massachusetts  Archives — Pecu-  "journal  of  the  House. 

niary,  vol.  iv.  ^Massachusetts    Archives— Pecu- 

2  Journal  of  the  House.  niary,  vol.  iv. 
^  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY.  J  39 

^  Gen.  William  Johnson,  commandci*  of  the  forces  at  1755, 

the  Westward,  intended  to  so  ai^ainst  Crown  Point,  writes  ^-p'^^ 
'  00  )  June 

to  Governor  Shirley.  Speaking  of  a  grant  made  by  Mas-  19. 
sachusetts,  he  remarks,  "The  £000  mentioned  for  the 
Indian  service,  is  not  specified  to  be  sterling,  or  what  cur- 
rency. I  make  no  doubt  it  is  the  former,  and  that  the 
word  sterling  is  an  omission.  In  this  you  will  please 
make  me  positive."  This  passage  shows  how  hard  it  was 
for  an  Englishman  to  have  the  same  views  of  currency, 
as  our  Provincials.  These  well  understood,  that,  unless 
sterling  was  used  in  any  vote  for  money,  it  of  course 
meant  New  England,  or  lawful  money. 

-Still  urged  by  Governor  Shirley  to  rally  their  almost  1756. 
exhausted  energies,  and  raise  the  funds,  imperiously  Feb. 
called  for  by  expenses  of  the  war,  the  House  address  a 
message  to  him  in  a  desponding  tone,  which  shoAvs  that 
they  found  it  extremely  hard  to  obtain  money.  Their 
language  is,  "  When  the  Province  lay  under  a  heavy  load 
of  debt,  contracted  on  account  of  the  late  expedition  to 
Kennebeck,  the  two  Houses  notwithstanding  readily 
engaged  in  the  expedition  to  Crown  Point,  which  has  so 
much  increased  the  debt  of  the  Province,  that  its  inhab- 
itants are  ready  to  sink  under  the  burden  of  taxes  hereby 
brought  upon  them;  and  the  Government  ha\'e  so 
stretched  their  credit,  that  they  even  despair  of  borrowing 
money  sufficient  to  pay  off  their  troops,  lately  returned 
from  that  expedition." 

^  His  Excellency  replies,  that,  however  the  funds  in-  14. 
trusted  to  his  care  by  the  Crown  for  carrying  on  the  war, 
were  never  intended  to  be  loaned  to  any  Colony,  yet, 
seeing  the  necessity  of  the  case,  he  would  venture  to  let 
Massachusetts  have  £30,000  sterling,  to  be  secured  by  the 
taxes  of  the  two  succeeding  years.  This  proposition  was 
readily  adopted.  While  thus  taking  on  themselves  re- 
peated burdens  of  debt,  the  authorities  of  this  Common- 
wealth, as  those  of  others,  were  encouraged,  that  the 
Royal  exchequer  would  refund  the  bill  of  costs. 

>  Massachusetts    Archives  —  Let-  '^  Journal  of  the  House.  ' 

ters,  vol.  iv.  ■>  Journal  of  the  House. 


140  HISTORICAL  ACCOUNT  OF 

1756.  ^  In  accordance  with  the  earnest  expectation  of  the 
March  following  recipients,  a  warrant  is  issued  from  his  Majesty's 
3.  Council  for  New  England,  with  New  York  and  Ncav  Jer- 
sey, to  receive  £115,000,  "as  a  free  gift  and  reward  for 
their  past  service,"  against  tlie  French.  Of  this  ^amount 
Massachusetts  was  allowed  £54,000.  Thus  an  anticipated 
source  of  relief  is  opened  for  this  Province. 

^  So  much  had  the  metropolis,  in  common  with  other 
sea  ports,  decreased  in  property  and  population,  and  conse- 
quently experienced  great  want  of  money  and  other  means 
to  meet  their  accumulated  taxes,  they  pray  the  Legisla- 
ture to  order  a  new  valuation  of  estates  throughout  the 
31. 

Province.     A  Bill  is  brought  in  accordingly. 

April  ^  The  General  Court,  in  a  letter  to  William  Bollan,  their 
!''•  agent  in  London,  state  several  reasons  Avhy  their  propor- 
tion of  the  large  amount,  recently  granted  the  Colonies 
by  Parliament  for  military  service  .against  the  French  and 
Indians,  should  be  greater.  Among  such  reasons,  is  the 
subsequent  one.  "Notwithstanding  the  extreme  diffi- 
culties of  procuring  money,  yet  we  have  not  taken  any 
step  to  a  paper  medium,  but  have  borrowed  our  supplies 
of  money  and  pay  interest  therefor  at  6  per  cent.,  whilst 
the  other  Governments  have  pushed  out  their  depreciating 
bills,  and  an  hundred  pounds  of  their  currency  is  not  now 
worth  so  much  as  seventy-five  were  when  the  expedition 
began.  At  least,  so  far  as  we  pay  interest  and  the)'-  do 
not,  we  are  entitled  to  a  preference." 
19.  ^Of  the  abundant  notes  issued  by  the  Province  ex- 
chequer to  meet  its  other  obligations,  we  give  the  ensuing 
specimen.  Like  its  numerous  similitudes,  it  is  far  from 
being  a  sign  of  fulness  in  the  Provincial  Exchequer.  It 
is  lothfully  issued  by  the  Government,  because  they  have 
nothing  better  to  meet  the  urgent  claims  upon  them. 

'Massachusetts  Archives  —  Colo-  Newcastle,  G.    Lyttleton,  H.   Fur- 

nial,  vol.  v.  nesse. 

2  New    Hampshire     had    £<?,000,  ^  Journal  of  the  House. 

Connecticut  £"26,000,  Rhode  Island  *  Massachusetts    Archives  —  Let- 

£7,000,  New  York    £1.1,000,   New  ters,  vol.  v. 

Jersey    £5,000.      The   names    sub-  ^  Alassachusetts  Archives — Pecu- 

scribed  to  the  warrant  were  Holies  niary,  vol.  iv. 


MASSACHUSETTS  CURRENCY.  |4J 

"  Province  of  the  Massachusetts  Bay.      1756. 
The  day  of  1756.  — .— 

Received  of 
the  sum  of  for  the  use  and  service  of  the 

Province  of  the  Massachusetts  Bay,  and  in  behalf  of  said 
Province,  I  do  hereby  promise  and  oblige  myself  and  suc- 
cessors in  the  office  of  Treasurer,  to  repay  the  said 

or  order,  on  or  before  the  tenth  day  of  June,  1758, 
the  aforesaid  sum  of  in  coined  silver  of 

sterling  alloy,  at  six  shillings  and  eight  pence  per  ounce, 
or  in  Spanish  milled  dollars  of  full  weight,  at  six  shil- 
lings each,  with  interest  annually,  at  the  rate  of  six  per 
cent,  per  annum. 

Witness  my  hand, 

A.  B.,   Treasurer.'^ 

This  officer  was  allowed  to  give  no  such  obligation, 
except  for  sums  higher  than  six  pounds. 

^  As   consignees   of    money,    granted    by   the    Crown,   Aug. 
Charles  Apthorp  and  son,  of  Boston,  write  to  Governor    24. 
Shirley,  that  it  has  reached  New  York,  and  is  there  de- 
posited in  the  Fort.     Such  tidings  are  exceedingly  wel- 
come.     They   are   regarded   as   the   harbinger   of  some 
alleviation  to  the  great  pressm-e  in  money  concerns. 

^In  reverting  to  the  experience  of  the  Province  under  i757. 
the  experiment  of  abstaining  from  the  use  of  paper  money,  J^°' 
except  its  loan  securities,  his  Honor,  S.  Phips,  thus 
expresses  himself  to  the  House.  "  It  has  been  much  for 
the  honor  of  this  Government,  that  the  several  Assemblies, 
since  the  change  of  currency,  have  been  careful  to  pre- 
serve the  public  credit." 

2  Aware  of  the  dark  cloud  resting  on  the  pecuniary  in-    Nov. 
t€rests  of  the  country.  Governor  Pownall  gives  advice  to     ^^' 
the  Legislature,  which  he  deems  suited  to  the  times.     '•'  I 
recommend,  as  your  taxes  are,  and  must  continue  (while 
the  enemy  thus  prevail)  very  great  and  grievous,  that  you 
be  not  quite  exhausted,  to  examine  into  the  state  of  those 

•  Massachusetts    Archives— Pecu-  "  Journal  of  the  House, 

niary,  vol.  iv.  ■*  Journal  of  the  House. 


]42  HISTORICAL  ACCOUNT  OF 

1  757  resources,  whence  they  arise,  and  that  you  establish  the 
-^^''^^  sure  and  lasting  interest  of  the   country  on  that  trade, 

which  is  founded  in  economy,  and  in  the  projfits  that  arise 

2  75g  from  your  own  produce,  labour  and  exports." 

June       1  Referring  to  the   same   distressed  state  of  affairs,  the 

15 

*    House  and  Council  thus  address  the  Chief  Magistrate  : — 

"  Our  burdens,  your  Excellency  knows,   are   extremely 
great,  and  you  have  been  pleased  to  put  us  in  mind  of  the 
encouragement  we  have,  that  a  proper  compensation  will 
be  made  us.     We  earnestly  entreat  your   Excellency  to 
represent  to  his  Majesty  our  distressed  case,  and  our  ready 
disposition  to  exert  ourselves  to  the  utmost  in  his  Majesty's 
service ;  for  if  we  should  fail  of  relief,  and  our  taxes  be 
increased,   our  bm'dens  must   be  insupportable."      Such 
recitals  were  yearly  and  truly  made  while  the  contest 
with  the  French  continued, 
Oct.        ^  -^s  an  encouragement  to  the  Province,  the  Governor, 
4.     after  adverting  to  the  capture  of  Cape  Breton,  and  other 
victories,  informs  the  Assembly,  that  a  repeated  grant  of 
£27,380  19  11 J  sterling  had  been  made  to  them  by  Par- 
liament, for  its  expenses  in  the  war  of  1756.     Though 
such  information  gave  the  promise  of  speedy  relief  to  the 
Province  currency,  yet  for  the  want  of  suitable  convey- 
ance, its  remittance  was  long  delayed. 
1759^      -^However  great  and  commendable  exertion  was  con- 
March  stantly  made  by  the  Province  authorities  to  keep  the  Trea- 
sury scrip  at  par,  yet  it  had  become  depreciated  in  some 
degree.       To    prevent    the  continuance    of    an    evil,    so 
threatening  to  the  welfare  of  community,  a  committee  of 
the  House  are  appointed, 
19.        '*  After  continual  hearings  before  the    Legislature,  the 
Land  Bank  is  now  brought  up  in  a  more  particular  man- 
ner.    A  statement  is  made,  that  notwithstanding  several 
laws  had  been  passed  to  close  its  concerns,  yet  they  still 
remain  unsettled.     Many  of  the  partners  had  died,  had 
become  insolvent,  and  moved  out    of  the  Province.     It 

'  Journal  of  the  House.  *  Massachusetts    Archives — Pecu- 

^  Journal  of  the  House.  niary,  vol.  iv. 

■'  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY. 


143 


appears,  that  £995  in  the  bills  of  this  institution  are  unre-  1759. 
deemed.     It  is  enacted,  that  commissioners,  to  pay  them,  ^-^''^^ 
and  interest  thereon,  assess  £3,UU0  on  responsible  partners, 
and  if  these  decline  to  pay  in  30  days,  they  are  to  issue 
executions  against  them. 

^  A  letter  is  prepared  for  William  Bollan  and  John  Pow-  Oct. 
nail,  as  agents  for  transmitting  the  last  grant  to  Massa-  **^- 
chusetts  for  its  charges  in  the  war.  Its  language  follows. 
*'  Such  strenuous  efforts,  together  with  what  the  Province 
hath  done  this  present  campaign,  has  so  deeply  plunged  it 
into  debt,  that  the  public  credit  can  neither  be  maintained, 
nor  its  inhabitants  support  the  weight  of  their  taxes, 
miless  their  share  in  this  grant  be  remitted  as  soon  as 
possible.  I  am  therefore  directed  by  the  whole  Court  to 
desire  you  to  give  all  possible  despatch  to  the  afiair,  that 
so  greatly  concerns  this  Province ;  and  that  you  would 
convert  the  money  into  Portuguese,  or  other  good  heavy 
gold,  or  Spanish  milled  dollars,  as  from  the  price  of  the 
two  species  in  England,  compared  with  the  current  rates 
here,  yoii  shall  find  to  be  most  for  the  interest  of  the 
Province."  This  was  the  sum,  which  Mr.  Bollan  advised 
our  Government,  under  date  of  August  16,  1758,  he  had 
received. 

Feeling  that  their  case  was  a  hard  one,  the  ^  stockhold-  1 7  6  0 . 
ers  of  the  Land  Bank  petition  for  a  lottery  to  meet  the    J^'i- 
demands  on  them.     They  remark,  that  they  "  are  now, 
and  have  been  for  many  years  past,  under  all  manner  of 
micertainty  respecting  their  property." 

Among  the  various  demonstrations  of  dexterous  villany, 
as  to  the  medium  of  exchange,  is  that  upon  the  hammered 
coin.  Ezra  Taylor  relates  to  the  Assembly,  that  he 
"discovered  a  wicked  combination  of  sundry  persons  in 
Southborough,  in  making  and  uttering  of  counterfeit 
cobbs." 

2  There  being  a  general  sympathy  in  favor  of  the  pait-    Feb. 
ners  in  the  Land  Bank,  who  had  long  ago  answered  for     ^'^' 

1  Journal  of  the  House.  Jonathan    Payson,    Petor    Cliardon, 

"The    signers  of  the  petition  are  Samuel  Reed,  John  Brown,  William 

William    Stoddard,  John  Ruddock,  Rue,  and  John  Lee. 

Robert  Auchrautty,  Samuel  Adams,  •*  Journal  of  the  House. 


144  HISTORICAL  ACCOUNT  OF 

3  760.  their  own  shares,  and  also  for  those  of  many  other  dehn- 
""""^^  quents,   their  request  for  a  lottery  is   granted.     It  allows 
them  to  raise  £3,000,  with  the  addition  of  12|^  per  cent. 
But  it  did  not  succeed  as  anticipated.     It  only  neated, 
after  much  delay  in  its  operations,    £556  15  6.      One 
great  means  of  prolonging  the  settlement  of  this  associa- 
tion's affairs,  was  the  loss  of  most  of  their  records,  with 
those  of  the  Legislatm-e,  in  1747. 
June       ^  As  a  full  offset  to  the   Treasury  notes,   given  to  meet 
'     the  expenses  of  warfare  in  1759,  Parliament  grants  to  this 
Province  their  proportion  of  £200,000  sterling. 
j)gg^       ^  In  view  of  rest  from  the  taxes,  toils,  and  miseries  of  a 
17.     most  energetic  warfare — of  better  times  for  currency  and 
trade — Governor  Bernard  gives  scope  to  the  feelings  of  his 
heart.     He  thus  speaks  to  the  Assembly : — "  I  think  my- 
self happy,  that  it  has  fallen  to  my  lot  to  congratulate  you 
from  this  seat,  upon  the  glorious  conclusion  of  the  North 
American  war,   and  the  fair  prospect  that  now  presents 
itself,  of  the  security  of  our  country's  being  settled  upon 
the  most  sure  and  lasting  foundations." 
1761.      "^  With  regard  to  the  grants  of  Parliament  for  the  charges 
April  of  the  war,   the  most  of  our  authorities  were    strongly 
desirous  that  all  of  them  should  be  transported  in  specie. 
Indeed,  this  sort  of  money  was  requisite   to  redeem  the 
Government  notes.     So  situated,  they  had  been  at  great 
charges  in  getting  over  what  had  already  come  to  hand. 

Perceiving  how  this  matter  stood.  Governor  Bernard 
kindly  mentions  it  to  the  Council  and  House.  His  ob- 
servations follow.  "  If  we  look  for  the  advantages  which 
are  to  balance"  the  great  cost  of  importing  the  reimburse- 
ment in  hard  money,  "we  shall  find  them  all  imaginary. 
They  are  not  of  the  real  value  of  one  shilling.  If  there 
was  any  want  of  specie  for  circulation,  it  would  be  but  a 
temporary  convenience,  and  not  a  lasting  gain,  to  intro- 
duce specie  ;  and  the  want  must  be  great  to  justify  so 
large  a  premium  as  10  per  cent.  It  is  the  nature  of  trade, 
like  water,  to  bring  itself  to  a  level.     It  is  just  the  same 

'  General  Court  Records.  ^  Journal  of  the  House. 

^  General  Court  Records. 


MASSACHUSETTS  CURRENCY.  145 

thing,  whether  yon  bring  a  certain  quantity  of  specie  into  i76l. 
the  Province,  or  prevent  the  hke  quantity  from  going  out  ""^ 
of  it.  As,  therefore,  the  advantages  of  negotiating  your 
money  by  bills,  are  very  plain  and  certain,  the  only  ques- 
tion will  be,  whether  it  is  practicable."  His  Excellency 
then  states  that  he  has  made  it  certain,  from  the  promise 
of  merchants,  that  the  Province  may  receive  its  reimburse- 
ments by  bills  of  exchange,  instead  of  hard  money. 

1  In  accordance  with  the  advice  of  the  Chief  Magistrate,    July 
it  is  ordered  by  the  Legislature,  that  the  Treasurer  draw 
bills  of  exchange  for  £60,000,  being  the  proportion  of  Mas- 
sachusetts, as  granted  by  Parliament,  for  military  charges. 

As  silver  was  found  to  be  most  profitable  by  the  mer- 
chants for  paying  their  dues  in  England,  such  coin  was 
continually  scarce.  At  the  same  time,  gold  not  being  of 
so  ready  an  exchange  there  for  mercantile  obligations,  and 
also  not  a  legal  tender  for  debts  here — though  it  was  cur- 
rent as  individuals  could  agree — was  plentiful.  To  pre- 
vent the  inconvenience  arising  from  this  state  of  pecuniary 
relations,  a  majority  of  the  House  as  well  as  of  the  com- 
munity are  desirous  to  have  gold  made  a  legal  tender. 
^  The  expression  of  a  desire,  so  naturally  oria:inated  and  Nov. 
to  be  expected,  is  made  among  the  Representatives  by  the 
introduction  of  a  bill.  This  document  not  only  proposes 
the  legality  of  gold  as  well  as  silver,  in  the  discharge  of 
debts,  but  also  the  prevention  of  counterfeiting  coin,  and 
particularly  the  Province  notes  or  securities.  ^It  is  thus 
introduced : — "  Whereas  divers  species  of  foreign  gold 
coin  are  current  in  this  Province,  and  are  received  into 
and  paid  out  of  the  public  treasury,  but  are  not  lawful 
tender,  in  public  or  private  payments,  by  which  it  is 
apprehended  many  inconveniences  have  arisen  to  the  pre- 
judice of  Trade  and  Commerce,  and  consequently  very 
detrimental  to  the  public,''  such  money  be  placed  as  to 
legality,  on  the  same  footing  with  silver.  It  is  imme- 
diately singled  out  to  serve  as  the  pivot,  on  which  pai'ty 
views   and   feelings,  relative    to   the  prerogative    of   the 

1  Mass.  Arcliives — Pecu.,  vol.  v.  ^  Massachusetts    Archives — Pecu- 

2  Journal  of  the  House.  niary,  vol.  v. 

19 


146  HISTORICAL  ACCOUNT  OF 

1761.  Crown  and  the  Charter  rights  of  the  Province,  are  made 
^^"^^  long  to  revolve.  A  similar  experiment  had  been  tried  on 
the  bills  of  credit  for  forty  years.  The  fruits  of  that 
labor,  now  show  themselves  engrafted  on  another  branch. 
The  Council  on  its  being  presented  to  them,  negatived  it 
as  an  unpropitious  measure. 
Nov.  1  Perceiving  that  there  were  signs  of  discord  between 
the  two  Houses,  the  Governor  addresses  them  by  a  mes- 
sage. This  contains  the  ensuing  passages  : — "lam  wil- 
ling that  my  recommendations  should  be  confined  to  the 
single  business  of  calling  in  and  reemitting  the  Treasurer's 
notes.  I  think  it  indispensable,  that  the  owners  of  the 
notes  should  be  obliged  to  bring  them  in  by  a  certain  day^ 
under  the  penalty  of  the  Interest  ceasing  at  that  day. 
Without  this,  it  can  neither  be  ascertained  what  notes 
have  been  counterfeited,  nor  will  a  stop  be  put  to  the 
practice  for  the  future ;  for  this  purpose,  it  will  be  most 
expedient  to  reemit  them  in  the  same  money  they  are 
payable  in  now.  As  for  the  penalty  for  counterfeiting 
them,  although  I  think  all  punisliments,  except  capital, 
will  be  inadequate,  I  shall  consent  to  such  others  as  you 
shall  think  fit,  provided  you  add  a  clause,  that  all  the 
interest  upon  those  reemitted  Treasurer's  notes,  shall 
cease  upon  the  expiration  of  the  several  terms  for  which 
they  are  granted,  that  there  may  be  a  certain  determina- 
tion of  the  probable  mischief  of  counterfeiting  notes 
within  a  few  years." 

His  Excellency's  peace  ofi"ering  does  not  appear  to  have 
produced  conciliation  between  the  Representatives  and 
Council.  The  former  were  strenuous  for  the  enactment 
of  the  proposition  before  them  for  gold  to  be  legalized  as 
a  part  of  the  currency.  The  latter  took  a  point  blank 
position  on  the  other  side.  Seeing  that  there  was  no 
probability  of  their  coming  to  terms  of  agreement,  the 
Governor  again  interposes.  His  address  to  them  follows  : — 
"After  more  than  a  fortnight  spent  in  fruitless  debates,  I 
find  myself  obliged  to  prorogue  this  General  Comt,  with- 
out any  thing  effectuars  being  done   in  the   important 

1  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY.  147 

business  for  which  T  called  you  together."  He  further  1 701 , 
desires,  that  when  they  assemble,  they  will  come  unbiased  ^-^^^^^ 
and  unprejudiced  by  the  events  of  the  present  session. 

In  writing  on  this  subject  to  a  correspondent,  Thomas 
Hutchinson  uses  the  subsequent  language  : — ^  "  The  last  Dec 
session  of  the  Court  was  spent  in  a  controversy  about  our 
money.  The  House  passed  a  vote  for  making  gold  a 
lawful  tender  at  the  rate  it  passes.  This  would  have 
driven  away  our  silver  and  eventually  depreciated  the 
currency.  I  stood  in  the  front  of  the  opposition,  and  it 
was  with  difficulty  the  Council  was  kept  from  concurring. 
I  am  afraid  the  next  session,  as  the  Governor,  at  present, 
is  not  sensible  of  the  ill  consequences  of  the  proposal,  it 
will  pass.  If  it  succeed,  I  look  upon  it  to  be  the  first  step 
of  our  return  to  Egypt."  The  same  writer,  judging 
from  the  appearances  of  the  Legislature,  that  his  favorite 
plan,  which  he  first  formed  and  promoted  against  much 
untoward  resistance,  that  silver  only  should  be  tolerated 
by  statute  in  payment  of  debts,  was  soon  to  be  made 
copartner  with  gold  for  a  like  purpose — thus  uncovers  his 
heart  to  a  friend  in  England: — "I  opened  my  letter  of  the  1762. 

Tin 

llth,  to  tell  you,  that  the  House  have  passed  a  bill  for  15/ 
issuing  notes,  payable  in  dollars  at  6'  or  in  gold  at  the 
rates  now  set,  which  sinks  our  currency  four  or  five  per 
cent.  It  will  pass  the  Board  with  little  opposition.  The 
Secretary,  Erving,  Bowdoin,  and  two  or  three  more  are 
with  me,  and  a  great  clamour  is  raised  against  my  papers.^ 
Pray  tell  me  if  I  am  wrong,  and  let  me  know  what  people 
say  on  your  side  of  the  water.  If  the  party  see  them 
condemned,  I  shall  have  no  chance.  Our  dollars  will  be 
gone  in  a  twelve  month.  Pistareens  will  succeed,  and  I 
shan't  wonder,  if  the  next  motion,  or  at  least  after  some 
time,  is,  to  bring  gold  to  a  proportion  of  them  at  14'^  each. 
The  intrinsic  value  perhaps  is  not  S"*."  P  , 

^As  one  of  the   many  plans  adopted  by  the  Legislature     23. 
to  stop  the   iniquities  of  counterfeiting,   the  following  is 
passed  to  be   enacted : — Individuals  convicted  of  such  a 

*  Massachusetts  Archives— Hutch-  ^  Massachusetts    Archives — Pecu- 
inson's  Correspondence.                           niary,  vol.  v.     Journal  of  the  House. 

*  These  papers  were  on  currency. 


148  HISTORICAL   ACCOUNT   OF 

1762.  crime  are  to  be  set  in  the  pillory  one  hour — each  have  an 
"■"■""^'  ear  cut  oif,  drawn  to  the  gallows  and  set  thereon,  with 
ropes  round  their  necks  for  an  hour,  publicly  whipped,  not 
above  thirty-five  stripes ;  committed  to  the  house  of  cor- 
rection, confined  there,  kept  at  hard  labor  for  not  less  than 
ten  years  nor  more  than  twenty  years,  and  during  such 
term  shall,  once  every  year,  at  the  quarter  sessions  for  the 
peace,  be  set  in  the  pillory  one  hour.  The  Governor  did 
not  sign  this.  His  reason  will  soon  appear. 
March  ^  In  accordance  with  the  fears  of  Mr.  Hutchinson  and 
'  his  friends,  the  bill  for  adopting  gold  as  a  legal  tender, 
receives  the  sanction  of  the  governor.  It  requires  that 
such  coin  shall  be  at  the  rate  of  2^^  a  grain.  It  is  accom- 
panied with  another  enactment,  that  the  Province  notes, 
of  which  large  amounts  are  in  circulation,  shall  be  re- 
newed at  the  treasury.  In  anticipation  of  this,  a  form, 
suited  to  the  law,  that  gold  should  be  a  legal  tender  as 
well  as  silver,  had  been  prepared,  of  the  succeeding  tenor : 

Province  of  the  Massachusetts  Bay. 
The  day  of  A.  D. 

Borj'oioed  and  received  of  the  sum  of         for  the  use 

<i7id  service  of  the  Province  of  the  Massachusetts  Bay ; 
and  in  behalf  of  said  Province^  I  do  hereby  promise  and 
oblige  myself  and  successors  in  the  office  of  Treasurer  to 
repay  the  said  or  his  order  the  day  of 

A.  D.  the  aforesaid  sum  of  in 

Spanish  milVd  dollars  at  six  shillings  each^  or  in  the 
several  species  of  coined  silver  and  Gold  enumerated  in 
an  Act  made  and  passed  in  the  twenty-third  year  of  his 
late  Majesty  King  George  the  Second,  iniitled,  an  Act  for 
uscertaining  the  Rates,  at  which  coi?ied  silver  atid  Gold, 
English  half  pence  and  farthings  may  pass  within  the 
Government,  and  according  to  the  Pates  therein  men- 
tioned, with  interest  aniiually  at  six  per  cent. 

Witness  my  hand,   H.  G.,  Treasurer. 

A.  B.   -^ 

C  Z>.  >  Committee. 

E.  F.  ) 

'  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY.  |49 

'•Which  form  (except  as  is  hereafter  provided)  shall  be  17(32. 
printed,  with  a  suitable  border  round   the  same,  and  also  -^- — 
the  words — Province  of  the  Massachusetts  Bay,  the  word 
Committee^    and   the  words  witness  my  hand,  shall   be 
struck  off  from  a  copperplate,  which  the  Treasurer  is  em- 
powered to  procure." 

Province  notes  of  this  class,  received  the  name  of  the 
new  form,  and  occasioned  the  preceding  ones  to  be  called 
the  old  form.  This  was  a  partial  imitation  of  the  phrases 
of  new  and  old  tenor,  as  to  former  bills  of  credit. 

^  For  such  scrip  there  was  still  a  further  call.  Though  April 
hopes  were  cherished,  that  peace  by  this  time  would  have 
been  made,  yet  it  was  interrupted,  and  therefore  the  Prov- 
ince must  still  gird  on  their  armour,  and  still  give  their 
paper  to  meet  the  cost.  On  this  subject,  Governor  Bernard 
gives  his  own  views : — "  Although  I  would  not  have  you 
despond,  I  must  caution  you  against  being  too  secure  or 
indifferent.  You  must  not  think,  that  if  the  war  does  not 
rage  at  your  own  doors,  you  may  therefore  be  unconcerned 
spectators  of  it.  Your  interest  is  at  the  bottom  of  tliis 
contest ;  and  wherever  the  battle  is  fought,  the  prize  lies 
in  this  country.  The  negotiations  for  peace  were  inter- 
rupted by  the  Spaniards  demanding  a  right  of  fishing  on 
the  Banks  of  Newfoundland ;  and  he  has  also  avowed, 
that  the  concessions  of  the  French  were  too  advantageous 
for  the  British  nation.  Whereas  the  cession  of  Canada  is  ' 
the  only  one  that  can  be  said  to  be  greatly  advantageous 
to  Great  Britain.  The  North  American  fishery,  therefore, 
and  the  possession  of  Canada,  are  the  stakes  for  wliich  the 
game,  now  begun,  is  to  be  played." 

2  As  a  result  of  resistance  to  the  Act,  for  making  gold  a    20. 

tender  for  payment  of  debts,  by  members  of  the   Council, 

who  held  seats  on  the  bench  of  the   Supreme  Court,  a 

strenuous  movement  is  made  in  the   House  to  exclude 

them  from  holding  any  place  in  the  Legislative  branches. 

This  being  the  first  formal  trial  of  strength  on  such  a 

point,  fails  by  a  majority  of  seven  votes  in  the  negative. 

Though   thus   arrested,  it   soon   succeeded.      ^  Governor  June 

9. 

i  Journal  of  the  House.    ^  Journal  of  the  House.     ■'  Journal  of  the  House. 


150 


HISTORICAL  ACCOUNT  OF 


1762  Bernard  States  to  the  two  Houses,  that  a  reason  why  he 
^^-•■^■^  did  not  sign  the  bill  for  the  punishment  of  counterfeiters, 
was  because  it  did  not  require  death  for  fraud  upon  the 
government  notes.     He   says,   that   so   far   as   he  is  ac- 
quainted, such  a  penalty  is  demanded  in  all  other  domin- 
ions of  his  Majesty.     He  gives  an  opinion,  that  unless  a 
clause  is  inserted  to  this  effect,  it  is  better  to  have  the 
matter  dropped.     If  inserted,  he  advises  that  the  penalty 
be  printed  on  the  bottom  of  each  note.     The  House  do 
not  agree  to  this  proposal. 
June       1  As  the  treasmy  is  not  in  funds  sufficient  to  liquidate  the 
interest  due  on  the  Province  notes,  it  is  enacted,  that 
the  time  specified  for  such  payment  shall  be  prolonged. 
Though  measures  of  this  sort  had  been  resorted  to  from 
necessity,  yet  they  always  impaired  the  credit  of  the  paper 
concerned. 
July       ^As  having  much  influence,  as  to  the  concerns  of  our 
^^'    currency,  the   King  signs  a  warrant  for  £200,000  as  a 
grant  to  the  Colonies  for  charges  in  the  war.     Of  this, 
Massachusetts  is  to  have  a  large  proportion. 

Of  the  above  sum,  £10,000  were  reserved  to  settle  a 
claim  of  Massachusetts,  which  was  not  sufficiently  clear. 
This  reservation  was  ordered  by  liis  Majesty,  December 
14,  1763,  to  be  paid,  and  our  Province  to  have  £5,190  12  6 
of  the  whole  amount. 
1763.  2  With  earnest  desires  for  the  pecuniary  and  every  other 
1^7  true  interest  of  the  community  to  be  promoted,  the  Governor 
delivers  a  speech  to  both  Houses  mider  very  encouraging 
circmnstances.  Let  his  own  words  be  cited : — "  I  can 
now  congratulate  you  upon  the  final  conclusion  of  a  peace 
highly  honorable  and  advantageous  to  Great  Britain.  North 
America  is  now  become  entirely  British.  Your  fortunes 
are  now  in  your  own  hands :  and  on  yourselves  will 
greatly  depend  the  future  welfare  of  your  comitry.  By 
the  ceasing  of  the  war,  several  sources  of  the  current 
wealth  '*  of  this  Province  will  be  shut  up.     It  will  there- 

'  Journal  of  the  House.  *  The  liberal  grants  made  by  Par- 

*  Massachusetts   Archives — Pecu-  liament  for  the  expenses  of  war  with 

niary,  vol.  v.  the  French. 
^  Jouiaal  of  tlae  House. 


MASSACHUSETTS  CUllKEiNCY.  151 

fore  be  necessary  to  open  others  to  supply  their  deficiency.  17(53. 
It  will  be  necessary  not  only  to  avail  yourselves  of  every         " 
possible  improvement  in  agriculture,  fishery  and  trade,  but 
also  to  revive  and  promote  a  spirit  of  industry,  frugality 
and  economy.     Without  some  such  precautions,  it  will  be 
difficult  to  preserve  your   present  currency  and  support 
your  credit  with  Great  Britain."     The  fair  prospect,  thus 
presented  to  the  country,  is  soon  clouded.     ^  His  Excel-   Dec. 
lency  is  constrained  to  tell  the  sad  tale,  that  there  is  a    '^^' 
general  conspiracy  of  the  Indians  against  the  English,  and 
that  the  sword  must  be  again  girded  to  defend  the  terri- 
tory from  the  horrors  of  savage  invasion.     In  addition  to 
this,  the  mercantile  communities  are  thrown  into  fear  and 
commotion,  by  laws  of  Parliament — such  as  the   Sugar 
Act  and  others,  which  are  deemed  greatly  prejudicial  to 
the  trade  of  this  Province.     ~  The  merchants  and  traders    27, 
petition  the  Legislature  to  strive  for  averting  the  appre- 
hended evils  of  such  policy  on  the  part  of  the  mother 
government. 

In  reference  to  trials  of  this  sort,  the  Representatives  1704. 
communicate  their  thoughts  to  Mr.  Jasper  Mauduit — who,  J""^ 
they  supposed,  had  not  acted,  as  their  agent,  with  suitable 
energy  for  the  welfare  of  Massachusetts.  From  this  letter 
we  extract  a  few  sentences : — "  In  the  last  war,  we  exerted 
ourselves  much  beyond  our  natural  strength,  and  thereby 
we  have  incurred  a  heavy  load  of  debt,  which  all  the 
resources  in  our  power  will  hardly  clear  us  from  in  many 
years.  Can  it  be  possible,  that  the  duties  to  be  imposed, 
and  the  taxes  to  be  levied,  shall  be  assessed  without  the 
voice  of  one  American  in  Parliament?"  In  connection 
with  their  letter  to  Mr.  Mauduit,  the  House  order  "  the 
state  of  the  rights  of  the  British  Colonies  "  to  be  forwarded 
to  him.  They  also  authorize  a  Committee  to  correspond 
with  the  other  governments  and  inform  them  what  instruc- 
tions are  ordered  for  their  agent,  requesting  him  to  use  his 
endeavors  for  repealing  the  Sugar  Act  and  preventing  the 
Stamp  Act  or  other  taxes  on  American  Colonies.  Thus, 
however  this  Province  had  been  enabled  to  sustain  by  the 

1  Journal  of  the  House.  -  Journal  of  the  House. 


152 


HISTORICAL  ACCOUNT  OF 


2754  reimbursements  from  England,  the  credit  of  its  notes, 
'■^^•^-^^  since  paper  money  ceased  to  be  a  legal  tender — much 
better  than  before — still,  the  most  of  its  inhabitants  dread 
that  their  pecuniary  and  other  kindred  interests  will  suffer 
greatly  by  the  attempt  of  Parliament  to  obtain  a  revenue 
from  them,  when  they  had  scarcely  leisure  to  breathe 
freely  and  fully  from  the  struggles  of  a  prolonged  and 
Oct.   vigorous  warfare. 

^^'  As  a  further  illustration  of  the  condition  of  Massachu- 
setts in  its  pecuniary  interests  and  other  relations,  we  adduce 
some  extracts  from  an  address  of  the  General  Court  to 
his  Majesty  : — "  We  find  ourselves  at  the  happy  conclusion 
of  the  war  by  our  great  exertions  in  it,  involved  in  a 
heavy  load  of  debt,  which  will  take  us  many  years  with 
all  the  resources  in  our  power  to  clear  ourselves  of.  The 
sums  annually  required  in  the  course  of  the  late  war  being 
much  greater  than  could  be  raised  on  your  Majesty's  sub- 
jects each  year,  we  were  constantly  obliged  to  borrow 
large  sums  at  a  high  interest,  and  to  secure  the  payment 
thereof  to  the  lenders,  to  anticipate  and  mortgage  the 
standing  revenues  of  the  government,  which  consist  of  a 
tax  on  all  polls  and  all  real  and  personal  estate,  within  the 
Province,  on  import,  certain  duties  on  shipping  and  an 
excise  on  all  spirituous  liquors.  We  cannot  therefore  con- 
ceal our  grief  to  find  by  a  late  Statute,  made  and  passed 
in  the  fourth  year  of  your  Majesty's  reign,  entitled,  an 
Act  for  granting  certain  duties  in  the  British  Colonies  and 
Plantations  in  America,  etc.,  such  duties  laid  and  regula- 
tions established,  as  must  not  only  deprive  us  of  all  these 
resources,  but  must  finally  destroy  our  trade,  and  as  we 
humbly  conceive,  deprive  us  of  the  most  essential  rights  of 
Britons.  The  duties  laid  by  the  said  Act,  interfere  with 
the  Import  and  Excise  Acts  of  this  Province,  nor  can  we 
continue  these,  if  the  said  duties  are  exacted ;  whence, 
the  security  the  creditors  of  this  government  had  from 
those  branches  must  fail.  The  high  duty  on  foreign 
sugar  and  molasses  must  soon  destroy  our  Trade  to  the 
foreign  islands.  Without  this,  our  fishery  cannot  be  sup- 
ported.    The  restraint  on  lumber,  which  we  are  by  said 


MASSACHUSETTS  CURRENCY.  153 

Act  prohibited  from  sending  to  any  other  part  of  Europe  17(54. 
besides  Great  Britain  will  destroy  another  great  branch  of  "    '^ 
our  commerce.     And  the   many  other  regulations  intro- 
duced or  newly  enforced  by  the  said  Act,  have  already 
produced  the  greatest  distress  on  all  your  Majesty's  trading 
subjects  in  this  Colony.     And  our  Trade  being  totally 
ruined,  which  we  apprehend  will  be   the  necessary  and 
speedy  effect  of  these   new  regulations,   if  enforced,  this 
Province  will  be  unable  to  pay  its  publick  debts,  whence 
must  soon  arise  a  general  bankruptcy,  and  whenever  this 
happens,  the  inhabitants  of  the  kingdom  of  Great  Britain, 
will,  we  fear,  be  great  sharers  in  our  calamity.     But  we 
must  further  humbly  represent  to  your  Majesty,  that  we 
look  upon  those  duties  as  a  tax,  and  which  we  humbly 
apprehend  ought  not  to  be   laid  without  the  Representa- 
tives of  the  people  affected  by  them.     With  respect  to  a 
general   stamp  duty,   we  beg  leave  to    observe  to  your 
Majesty,  that  in  the  late   war,  being   driven  by  want  of 
money  to   every  expedient,  we,  in   this  Province,  once 
made  such  an  Act,  which  was  to  continue  two  years ;  but 
we  found  it  so  burthensome   to  your  Majesty's  subjects, 
and  it  was  generally  complained  of,  that  it  was  laid  aside, 
and  hath  never  been  since  revived.     We  beg  leave  to  add, 
that  these  duties  joined  to  the  other  aforementioned,  will 
exhaust  this  Province  of  all  its  money.     It  will  be  utterly 
incapable   of   paying    its   public   debts,    of    bearing    the 
charges  of  its  domestic  government,  and  the  subjects  here 
of  paying  their  debts  due  to  your  Majesty's  subjects  in 
Great  Britain."     This  is  indeed  a  piteous  relation.     But 
however,  our  fathers  may  have  felt  more  in  contemplating 
the  facts  on  which  it  was  founded,  than  they  would  have 
experienced,  if  having  give  to  these  facts  a  full  trial ;  still, 
the  relation  had  many  fearful  realities  about  it.     It  does 
not  appear  to  have  been  the  soundest  policy  on  the  part  of 
the  parent  government  to  impose   burdens  on  a  country, 
yet  oppressed  with  a  debt  contracted  in  the  warfare,  which 
was  as  much  for  the  honor  and  welfare  of  the   Crown  as 
for  themselves.     Still  less  wise  docs  it  seem  to  have  been 
in  Parliament,  so  to  strain  the  interpretation  of  the  Prov- 

20 


154  HISTORICAL  ACCOUNT  OF 

1764.  ince   Charter  as   to  interfere    with   the   long   estabhshed 
"^"^^  custom  of  our  fathers,  of  laying  their  own  taxes  for  the 

support  of  their  own  internal  government. 
17C5.      ^  Thus  situated,  large  amounts  of  the  treasury  scrip  are 
March  ^^^  circulation  and  soon  become   due.     The  only  way  to 
redeem  it,  was  to  levy  a  tax,  "insupportable  to  the  inhabi- 
tants mider  their  distressed  circumstances."    Therefore,  the 
Treasurer  is  instructed  to  renew  the  notes  out,  for  all  who 
are  disposed  thus  to  accommodate,  and  to  hire  of  others 
who  may  be  inclined  to  lend,  at  five  per  cent,  interest, 
^'^y        Desirous  and  vigilant   to    free  the    Province   from   its 
embarrassments  and  promote  a  safe  medium  of  exchange, 
his   Excellency  calls   the  attention  of   the    Assembly  to 
what  he  judged  would  have  such  a  tendency.    He  observes 
to  them — "  Soon  after  my  arrival,  I  formed  in  my  mind  an 
idea  of  three  improvements  which  this  country  was  capa- 
ble of  making  profitable  to  itself  and  convenient  to  Great 
Britain ;  I  mean  potash,  hemp,  and  the  carrying  of  lumber 
to  the  British  markets."     While  thus  recommending  what 
approves  itself  to  our  perception,  he  discourages  other  enter- 
prise contrary  to  the  popular  views  of  our  age.     On  this 
point,  his  words  are — "  You  will  have  no  occasion  vainly 
to   attempt  to  transfer   manufactories   from  their   settled 
abode,  (i.  e.  England;)  an  midertaking  at  all  times  difli- 
cult,    but,  under  the  disadvantage  of  high  priced  labor, 
impracticable." 
June        With  reference  to   the  movement  of  the  House  for  a 
^'     Congress  of  the  Colonies,  to  meet  in  New  York,  and  con- 
fer on  their  diflicnlties  in  consequence  of  Parliamentary 
laws,  and  to  other  demonstrations  of  resistance   to  what 
they  considered  oppression,  the  Governor  is  constrained  to 
Sept.  say,  -"This  Province  seems  to  be  on  the  brink  of  a  pre- 
^^'    cipice."     In  the  same  address,  after  dwelling  on  the  evils 
which  must  result  from  a  refusal  to  use  the  stamp  papers, 
which  were  then  near  Boston  harbor,  and  made  necessary 
in  all  public   transactions,   he  asks,  "Can  this  Province 
bear  a  cessation  of  law  and  justice,   and  of  trade   and 
navigation,  at  a  time   when  the  business  of  the  year  is 

'  Journal  of  the  House.  "  Journal  of  the  House. 


MASSACHUSETTS  CURRENCY.  155 

to   bo  wound  up,   and  the    severe  season  is  hastily   ap- ITfiS. 
proaching?"     The  appeal,  which  he  ably  made  on  this  "^^^ 
occasion,    did   not   turn    the   Representatives   from   their 
course. 

^In  their  reply   to  his  speech,   they    remark,  "Your    Oct. 
Excellency  tells  us  that  the   right  of  the  Parliament  to 
make  laws  for  the  American  Colonies  remains  indisputa- 
ble in  Westminster.     Without  contending  this  point,  we 
beg  leave  just  to  observe,  that  the  Charter  of  this  Prov- 
ince  invests  the   General  Assembly  with  the    power  of 
making  laws  for  its  internal   government  and  taxation ; 
and  that  this  Charter  has  never  yet  been  forfeited.     There 
are  certain  original  inherent  rights  belonging  to  the  peo- 
ple, which  the   Parliament  itself  cannot  divest  them  of, 
consistent  with  their  own  Constitution.     Among  these  is 
the  right  of  representation  in  the  same  body  which  exer- 
cises the   power  of  taxation."     These  passages  are  cited 
from  an  abundance   of  discussions,  very  ably  and  inter- 
estingly sustained   between   Governor   Bernard   and  the 
Representatives,  not  for  a  political  purpose,  but  to  give  a 
specimen  of  the  different  views  then  entertained  and  ad- 
vanced as  to  measures,  which  had  a  sensible  and  powerful 
effect  on  the  currency  of  this,  as  well  as  other  portions  of 
the  country. 

^  Among  several  objections  which  the  House  make  to  17(35. 
the  late  proceedings  of  the  Governor  and  Council,  as  Ja"- 
savoring  too  much  of  arbitrary  power,  is  "  taking  upon 
themselves  to  regulate  and  stop  the  interest  of  the  public 
securities."  The  popular  branch  of  Government  would 
have  been  glad  for  the  interest  on  the  large  amount  of  the 
Province  paper  to  have  ceased  in  a  proper  way  ;  but  were 
dissatisfied  that  a  matter,  which  long  custom  had  assigned 
to  them  more  than  to  the  other  branches,  should  be  taken 
from  their  hands. 

^  While  a  thick  cloud  so  rested  on  the  monied  concerns    May 
of  the  Province,  tidings  come  which  tend  greatly  to  its 
dispersion.     They  are,  that   the  Stamp  Act  has  been  re- 

'  Journal  of  the  House.  ^  Annals  of  Salem,  p.  467. 

2  Journal  of  the  House. 


21. 


156  HISTORICAL  ACCOUNT  OF 

1766.  pealed.      Demonstrations  of  joy  were   made,  which,    in 
''^"^'  some  of  their  appendages,  led  more  to  a  spirit  of  insubor- 
dination than  to  regularity.     The  effigies  of  Pitt  and  Lord 
North  were  paraded  through  the  streets.     The  former  was 

29,  greatly  honored,  but  the  latter  burnt.  ^  Mr.  Bernard  con- 
June   gratulates  the  Assembly  on  this  occasion.     ^  The  House 

3-  reciprocate  his  benevolence,  and  call  the  repeal  "  a  most 
interesting  and  happy  event,  which  has  diffused  a  general 
joy  among  all  his  Majesty's  loyal  and  faithful  subjects, 
throughout  this  extensive  continent." 

28.  ^  As  an  index  of  the  Government  notes  which  circu- 
lated in  community,  and  were  to  be  paid  in  one  year,  we 
have  the  following.  This  enacted  that  the  Treasury  be 
supplied  with  the  sum  of  one  hundred  and  fifty-seven 
thousand  pounds,  for  the  redemption  of  securities,  that 
become  due  in  1767. 

1767.  ^  After  various  attempts  to  close  the  concerns  of  the 
Feb.   Land  Bank,  it  still  makes  its  appearance,   like  a  troubled 

*  spectre,  in  the  hall  of  legislation.  The  commissioners 
give  a  long  account  of  the  transactions  relative  to  this 
5.  institution.  ^  The  amount  due  from  it,  in  notes  and  in- 
terest, since  September  9,  1740,  was  £1,740  7  3.  A  com- 
mittee report,  that  this  shall  be  paid  in  equal  proportions 
by  the  surviving  directors,  and  out  of  the  estates  of  those 
deceased,  one  ninth  each,  first  deducting  so  much  of  the 
sums  assessed  on  them,  Sept.  8,  1763,  as  they  had  respect- 
ively paid.  But  a  question  was  made  by  Mr.  Robert 
Auchmuty,  an  attorney  for  the  directors,  as  well  as  a  de- 
scendant from  one  of  them,  whether  they  were  not  already 
released  from  all  such  responsibility  by  a  previous  settle- 
ment with  the  Assembly's  commissioners. 
Aua-.  6  Notwithstanding  all  that  had  been  said  and  experi- 
25.  enced,  with  regard  to  bills  of  credit,  there  is  still  a  party 
among  the  people  of  the  Province  and  their  Representa- 
tives, for  its  restoration  as  a  legal  tender  for  debts.     Gov- 

» Journal  of  the  House.  *  Massachusetts  Archives— Pec u- 

2  Journal  of  the  House.  niary,  vol.  v. 

'                  3  Journal  of  the  House.  ''  Massachusetts  Archives — recu- 

*  Massachusetts   Archives— Pecu-  niary,  vol.  v. 
niary,  vol.  v. 


MASSACHUSETTS  CURRENCY.  ]57 

ernor  Bernard  writes  by  request  of  the  Council  to  the  Earl  17 67. 
of  Shelburne  on  this  subject.  Having  sent  his  Lordship  -^-^-^ 
a  concise  history  of  such  currency  in  Massachusetts,  he 
proceeds,  as  his  own  language  expresses  : — ''  The  occasion 
of  di-awing  up  this  representation  was  this.  It  appeared 
in  the  London  newspapers,  that  Uennys  De  Berdt,  Esq., 
agent  for  Massachusetts  Bay,  joined  other  agents  of  the 
Colonies  in  their  solicitation  for  a  permission  to  create 
paper  money.  If  JNIr.  De  Berdt  had  really  been  agent  for 
Massachusetts  Bay,  as  he  really  never  was  more  than  a 
charge  d'affairs  of  the  House  of  Representatives,  he  could 
not  have  done  any  thing  more  contrary  to  the  sense  of 
this  Province,  than  appearing  as  an  advocate  for  paper 
money."  His  Excellency  also  adds,  that  the  Council,  at 
the  last  session  of  the  Assembly,  desired  the  Representa- 
tives to  unite  with  them  in  a  statement,  that  this  Province 
did  not  wish  to  join  in  such  a  solicitation  to  Parliament 
for  paper  money ;  but  the  House  declined  to  act  with  the 
Council  in  this  affair.  The  fact  here  presented,  shows 
that  there  was  a  more  extensive  wish,  among  the  people 
at  large,  for  the  renewal  of  a  legalized  paper  currency, 
than  the  Governor  supposed.  Such  an  attempt  of  Mr.  De 
Berdt,  in  connection  with  his  being  employed  by  the  Rep- 
resentatives as  their  agent,  justifies  the  conclusion,  that 
there  was  far  less  satisfaction  with  the  hard  money  sys- 
tem, even  with  the  circulation  of  a  half  million  of  Gov- 
ernment scrip,  than  was  anticipated  and  maintained  by 
the  exclusively  coin  party, 

^Dennys  De  Berdt,  agent  for  the  House,  writes  from  Oct. 
London  to  our  Assembly : — "  I  was  well  apprised  how  hap-  ^^• 
pily  you  were  relieved  from  the  late  difficulties  of  a  paper 
currency,  and  the  contentment  the  sensible  part  of  your 
Province  experience  in  having  a  solid  medium."  Respect- 
ing a  proposal  for  the  introduction  of  bills  here  again,  he 
adds,  "Whenever  the  matter  is  under  consideration,  I 
shall  act  agreeably  to  the  precautions  in  your  letter." 

~A  committee,  in  giving  an  account  of  the  amiual  con-  Nov. 

3. 

^Massachusetts    Archives  —  Let-  -Massachusetts   Archives — Pecu- 

ters,  vol.  vi.  niary,  vol.  v. 


158  HISTORICAL  ACCOUNT  OF 

1767^  flagration   of  the    Province   notes,    state,   that  they  had 

" — '^^  burned  them,  as  due,  for  several  years,  from  1763,  to  the 
amount,  in  principal,  of  £203,123,  the  interest  being 
£9,932  18  5. 
Nov.  ^  Another  unfavorable  omen  to  our  monied  interests,  was 
the  commenced  operation  of  a  Parliamentary  ^  Act,  which 
laid  duties  on  imported  glass,  paper,  teas,  and  paints. 
Such  a  law,  though  not  producing  so  much  alarm  as  the 
Stamp  Act,  was  followed  with  riots,  and  insults  to  its 
executors.  According  to  the  -^motion  of  Boston,  sub- 
scription papers  are  soon  circulated  through  the  towns,  for 
the  promotion  of  industry,  economy,  and  manufactures, 
and  "thereby  prevent  the  unnecessary  importation  of 
European  commodities,  which  threaten  the  country  with 
pov^erty  and  ruin." 

1768.  ^With  reference  to  the  same  absorbing  subject,  the 
Feb.  House  pass  the  ensuing  resolves.  Only  one  member, 
Timothy  Ruggles,  who  openly  manifested  his  adherence 
to  Royalists,  voted  against  them.  "  Whereas  the  happi- 
ness and  well-being  of  civil  commmiities  depend  upon 
industry,  economy,  and  good  morals ;  and  this  House, 
taking  into  serious  consideration  the  great  decay  of  the 
trade  of  the  Province,  the  scarcity  of  money,  the  heavy 
debt  contracted  in  the  late  war,  which  still  remains  on  the 
people,  and  the  great  difficulties,  to  which  they  are  by 
these  means  reduced : — Resolved,  that  this  House  will 
use  their  utmost  endeavours,  and  enforce  their  endeavours 
by  example,  in  suppressing  extravagance,  idleness  and 
vice,  and  promoting  industry,  economy,  and  good  morals 
in  their  respective  towns.  And  in  order  to  prevent  the 
unnecessary  exportation  of  money,  of  which  this  Province 
has  of  late  been  so  much  drained,  it  is  fm'ther  resolved, 
that  this  House  will  by  all  prudent  means,  endeavour  to 
discountenance  the  use  of  foreign  superfluities,  and  to 
encourage  the  manufactures  of  this  Province." 

June       ^rpj^e  inquiry,  whether  the  surviving  directors  of  the 

'  Annals  of  Salem.  ■'Journal  of  the  House. 

2  This   Act  signed  by   the  King  *  Massachusetts    Archives — Pecu- 

June  29,  1767.  niary,  vol.  v. 

3Made  October  28,  1767. 


MASSACHUSETTS  CURRENCY.  ] 59 

Land  Bank,  and  heirs  of  others,  deceased,  had  not  been  1768. 
released  from  all  farther  demands,  still  remains  unsettled.      "^^ 
The  last  amount  of  claim  made  upon  them,  for  the  principal 
and  interest  on  their  bills  unredeemed,  was  about  £1,500. 
The  final  action  of  the  General   Court  on  this  subject, 
does  not  appear  to  have  been  definitely  recorded  among 
their  proceedings.     The  probability,  however,  is  that  the 
directors  or  their  heirs  discharged  this  balance.     Still  the 
case  of  Benjamin  Jacobs,  one  of  the  partners  of  the  Bank, 
who  had  been  sued  and  cast  for  a  considerable  amount  of 
its  notes,  interests  the   Legislature,  who  require  the  late 
commissioners  for  winding  up  the  affairs  of  this  institu- 
tion, to  consider  his  petition  for  relief.     Here  we  take  our 
leave  of  this  monied  association,  as  one  of  the  most  noted 
that  ever  existed  in  our  country ;   not  on  account  of  its 
immense  capital,  for  this  was  comparatively  small ;  but  of 
its  being  made  the  occasion  of  bitter  strife  in  politics,  of 
costly  and  demoralizing  litigation,  of  persecution  extended 
to  almost  every  ramification  of  community,  and  of  pro- 
tracted and  intense  anxiety,  as  well  as  of  great  loss  to  its 
principal  proprietors. 

^  The  troubles  between  the  Crown  and  the  Colonies  still  Dec. 
increasing,  a  majority  of  the  Massachusetts  Council  petition 
the  House  of  Commons  to  aid  in  the  removal  of  griev- 
ances here  endured.  This  document  contains  the  ensuing 
passages,  relative  to  our  currency.  "  This  Province  is 
still  in  debt  on  account  of  the  charge  incurred  by  the  late 
war.  The  yearly  taxes  upon  the  people  for  lessening  the 
debt,  though  not  so  great  as  during  the  war,  are  never- 
theless with  more  difficulty  paid,  by  reason  of  the  great 
scarcity  of  money.  The  scarcity  of  money  in  the  Colo- 
nies is  owing  to  the  balance  of  their  trade  with  Great 
Britain  being  against  them ;  which  balance  drains  them 
of  their  money,  to  the  great  embarrassment  of  their  trade, 
the  only  source  of  it.  This  embarrassment  is  much  in- 
creased by  the  regulations  of  trade,  and  by  the  Tax  Acts, 
which  draw  immediately  from  trade  the  money  necessary 
to  support  it ;  on  the  support  whereof  the  payment  of  the 

'  Appendix  to  tlie  Journal  of  the  House. 


IgQ  HISTORICAL  ACCOUNT  OF 

1768.  balance  aforesaid  depends.  The  exports  of  the  Colonies, 
■"^'"^  all  their  gold  and  silver,  and  their  whole  powers  of  remit- 
tance, fall  short  of  the  charged  value  of  what  they  import 
from  Great  Britain."  Indeed,  this  is  a  gloomy  portredture 
of  the  monied  concerns  of  the  Commonwealth.  The 
determination  of  our  fathers  to  stand  in  their  lot  and  con- 
tend for  their  Charter  privileges,  and  the  equally  strong 
purpose  of  Parliament  to  continue  their  pohcy  of  Colonial 
taxation,  gave  but  faint  signs,  that  such  a  representation 
would  greet  the  eye  of  watchful  patriotism  with  brighter 
and  more  cheerful  hues.  The  alternative  of  these  rela- 
tions between  our  country  and  England,  was.  that  either 
one  or  the  other  must  retreat  from  their  position,  or  else 
both  be  brought  to  the  conflict  of  arms. 
1772.  ^  While  there  is  a  strong  inclination  on  the  part  of  many 
22^  to  take  the  paper  money  of  New  Hampshire,  Rhode 
Island  and  Comiecticut,  which  was  as  strongly  forbidden 
by  renewed  laws,  the  bills  of  Nova  Scotia,  New  York, 
and  New  Jersey,  had  circulated  considerably  in  Massa- 
chusetts. To  prevent  this,  so  far  as  the  particd  fences 
of  legislation  could,  a  motion  is  made  by  the  Council  for 
an  Act.  but  being  sent  down  to  the  House,  it  is  at  first 
July  there  rejected.  ^  Again  proposed,  it  succeeds,  and  receives 
the  sanction  of  Governor  Hutcliinson.  Thus  passed,  it 
fmnishes  us  with  the  succeeding  extract : — '-Whereas  the 
bills  of  the  Governments  of  New  York,  New  Jersey,  and 
Nova  Scotia,  have  long  since  obtained  a  currency  in  some 
parts  of  this  Government,  and  whereas  the  Government 
of  New  York,  have,  the  last  3'ear,  emitted  the  sum  of 
£120,000,  which  are  in  no  way  a  tender,  saving  in  the 
Treasmy  of  said  Province,  and  already  begin  to  depre- 
ciate among  themselves :  and  as  many  of  the  bills  of  the 
said  last  emission,  as  well  as  the  bills  of  former  emissions 
of  the  aforesaid  Governments,  are  comiterfeited,  by  which 
many  persons  are  already  sufferers,  and  more  liable  to  be 
so,  and  as  all  paper  bills  are  liable  to  depreciate,"  none  are 
to  receive  or  pay  such  currency  after  the  first  day  of  next 
November,  on  penalty. 

'  Journal  of  the  House.  '  Acts  of  Massachusetts. 


MASSACHUSETTS  CURRENCY.  261 

*  Though  the  plot  thickens,  as  to  reconcihatioii  between  1773. 
tlie  Colonies  and  Great  Britain,  because  the  former  in- 
creasingly insist  on  a  stricter  adherence  to  their  Charter 
privileges,  even  as  liberally  construed  by  themselves,  and 
the  latter  more  determined  to  oppose  such  demands,  as 
presumptuous  in  their  view,  yet  the  monied  interests  of 
the  province  are  in  a  better  condition  than  they  had  been. 
This  is  occasioned  by  the  prosperity  of  merchandize,  fish- 
ery and  agriculture. 

2  As  an  indication  that  the  enactments  against  usury  are  jo 
much  evaded,  we  have  the  subsequent  introduction  to  a 
corresponding  Bill  before  the  Assembly.  <'  Whereas  the 
Acts  already  in  being  against  excessive  usury,  have  been 
found  in  a  great  measure  ineffectual,  to  prevent  avaricious 
and  unprincipled  people  from  taking  more  than  six  per 
cent,  per  annum,  for  the  loan  of  money,  whereby  many 
honest  and  useful  members  of  community,  who  have  been 
reduced  to  the  necessity  of  borrowing  money  on  interest, 
have  been  oppressed,  in  contempt  of  law." 

^Notwithstanding  the  differences  between  Parliament  1774. 
and  our  country  had  reached  so  high  a  pitch,  as  threatened  "^^r' 
a  speedy  breakage  of  all  peaceful  relations  between  them, 
business  of  various  branches  had  so  improved,  that  the 
currency  of  the  Province  stood  on  a  good  foundation,  and, 
if  the  threatening  aspect  of  political  controversy  had 
immediately  changed,  it  would  have  given  the  promise  of 
long  prosperity.  The  remarks  of  Governor  Hutchinson 
on  this  topic,  are  as  follow.  "  There  never  has  been  a 
time  since  the  first  settlement  of  the  country,  when  the 
Treasury  has  been  in  so  good  a  state  as  it  now  is.  I  may 
congratulate  the  Province  upon  its  being  entirely  free 
from  debt,  the  tax  of  the  last  year,  with  the  stock  in  the 
Treasury  being  equal  to  all  the  securities  due  from  the 
Government,  and  to  the  charges  of  the  current  year." 
However  his  Excellency  gave  a  true  description  of  pecu- 
niary affairs,  yet  the  friends  of  liberty  regarded  it  only  as 
a  gilded  pill,  which  they  would  not  receive  as  a  catholi- 

*  Journal  of  the  House.  ^Massachusetts    Provincial    Rec- 

*  Journal  of  the  House.  ords. 

21 


152  HISTORICAL   ACCOUNT   OF 

1774.  con  for  their  complaints,  while  they  felt  that  their  Charter 
"""""^  rights  had  been  increasingly  and  alarmingly  restricted. 

From  one  step  of  debate  and  action  to  another,  the  most 
of  our  fathers  come  to  the  result  of  repelling  force  by 
force.  To  measure  swords  with  the  power  of  Britain, 
they  have  but  little  comparative  preparation. 

In  order  to  cultivate  a  spirit  of  friendship  with  other 
Colonies,  as  well  as  to  comply  with  the  continued  and 
prevailing  wish  of  many  for  paper  currency,  the  Com- 
mittee of  Safety,  appointed  by  the    Provincial    Congress 

1775.  pass  the  succeeding  Resolve.     ^"Whereas,  many  of  our 
2^     brethren  of  the  Colonies  of  Connecticut  and  Rhode  Island 

are  now  with  us,  to  assist  us  in  this  day  of  public  and 
general  distress,  in  which  we  are  all  deeply  concerned ; 
and  whereas,  our  brethren  of  said  Colonies  have  brought 
with  them  some  of  the  paper  currencies  of  their  respective 
Colonies  which  have  not,  of  late,  had  a  currency  with  us, 
and  for  want  of  which,  our  common  interests  may  greatly 
suffer.  Resolved,  that  said  paper  currencies  shall,  from 
and  after  the  date  hereof,  be  paid  and  received  within  this 
Colony,  in  all  payments,  to  all  intents  and  purposes,  in 
the  same  proportion  to  silver,  as  the  same  are  paid  and 
received  within  the  respective  Colonies  by  which  the 
same  have  been  issued."  Thus  proposing  a  measure, 
which  had  been  frequently  prohibited,  under  severe  re- 
strictions and  penalties,  the  Committee  refer  final  action 
upon  it  to  the  Provincial  Congress. 
3.  ^To  sustain  the  attitude  of  defence  which  they  had 
assumed,  and  which  was  rendered  more  necessary  from 
the  blood  recently  spilt  at  Lexington,  the  Provincial  Con- 
gress empower  the  Treasm-er  to  borrow  one  hundred 
thousand  pounds,  lawful  money,  secured  by  notes  of  the 
Province,  at  six  per  cent.,  and  made  payable  June  1,  1777. 
They  also  desire  the  other  Colonies  to  give  currency  to 
such  securities. 

The  phraseology  of  paper,  issued  under  such  new  and 
interesting  relations,   would  call  for  a  repetition  at  this 

*  Journal    of    the    Committee    of  -  Provincial  Congress  Records. 

Safety. 


MASSACHUSETTS  CURRENCY. 


163 


point,  did  it  not  bear  so  closo  a  rcscml)]ancc  to  the  last,  1775, 
already  cited.  — v-^ 

It  was  almost  vcrbaliui  like  what  had  been  issued  by 
our  Coimnouwealth  over  twenty  years.  Though  the 
authority  under  which  it  was  ordered  was  essentially  dif- 
ferent from  what  it  had  been,  still  the  expression  of  it  was 
so  retained  for  a  while,  lest  the  Crown  might  possibly 
withdraw  from  its  purposes  of  compulsion. 

^Witli  regard  to  the  securities  or  notes  given  by  our   May 
Province  Congress,  this  body  request  the  General  Congress     '^• 
to  promote  its  currency  throughout  the  Union. 

^  As  the  preceding  notes  had  been  ordered  not  to  be  of  20. 
a  less  denomination  than  £4,  the  Provincial  Congress 
empower  the  Treasurer  to  issue  others  for  the  army,  called 
soldiers'  notes,  of  six,  nine,  ten,  twelve,  fourteen,  fifteen, 
sixteen,  eighteen,  and  twenty  shillings.  The  amount  of 
this  emission  was  not  to  exceed  £26,000.  The  form  of 
such  money  is  here  transcribed. 

Colony  of  the  Massachusetts  Bay. 
No.  May  25,  1775. 

The  possessor  of  this  note  shall  be  entitled  to  receive, 
out  of  the  public  treasury  of  this  Colony,  the  sum  of 

shillings,  lawful  money,  on  the  twenty-fifth  day  of 
May,  A.  D.  1776,  ivith  interest,  at  the  rate  of  six  per 
cent,  per  annum ;  and  this  note  shall  be  received  in  all 
payments  at  the  treasury,  at  any  time  after  the  date 
hereof,  for  the  principal  sum,  without  interest,  if  so  paid 
before  the  said  %5th  day  of  May,  A.  D.  1776.  Which 
notes  shall  be  received  in  all  payments  in  this  Colony, 
and  no  discount  or  abatement  shall  be  m,ade  thereon,  in 
any  payment,  trade,  or  exchange  whatsoever. 

Here  we  have  the  revival  of  paper  ^  money,  as  a  legal 
tender,  after  a  lapse  of  more   than  a  quarter  of  a  century  j 

'Journal  of  Congress.  "to  attend  Mr.  Revere,  while  he  is 

*  Provincial  Congress  Journal.  striking   off  tlie  notes    for  advance 

2  Provincial     Congress     Records,  pay  to  the  soldiers,  night  and  day, 

June  4,  1775.     So  urgent  is  the  de-  alternately,  till  they  are  all  struck 

mand  for  bills,  that   Capt.   Bragdon  off." 

and  Col.  Thompson  are   appointed 


24. 


|g4,  HISTORICAL  ACCOUNT  OF 

1775.  and  though  our  Government  had  not  formally  cut  asunder 
"^■""^  the  ties  of  their  allegiance  to  Britain,  they  literally  made 
themselves   independent  of  Parliament   law   against  the 
legality  of  such  currency. 
May        1  Aware  that  the  political  foundations  of  the  Common- 
wealth were  broken  up  and  that  an  anxious  uncertainty 
rested  on  the  result,  and  that,  as  a  consequence,  there  must 
be  much  backwardness  in  loaning  money  to  the  Revolu- 
tionary authorities,  the  Provincial  Congress  offer  an  address 
to  the  people.     Tlieir  language  follows  : — "  This  Congress 
have  opened  a  subscription  for  £100,000.     It  is  of  the 
utmost  importance  that  the  money  be  immediately  ob- 
tained, that  the  public  credit  may  not  suffer.     We  most 
earnestly  recommend  to  such  of  you  as  have  cash  in  your 
hands,  which  you  can  spare  from  the  necessary  supplies 
of  your  families,  that  you  would  lend  the  same  to  the 
Colony,  by  which  you  will  put  it  in  our  power  to  carry 
into  effect  the  measures  undertaken  for  the  salvation  of 
the  country.     There  are  no  ways  of  improving  money  in 
trade.     There  is  the   greatest  probability,  that  the  other 
colonies  will  give  a  ready  currency  to  the  notes,  which 
will  render  them,  in  one  respect  at  least,  on  a  better  foot- 
ing than  any  notes  heretofore  issued  in  this  Colony.     If 
you  should  furnish  the  money  that  is  now  needed,  you 
will  perform  a  meritorious  service  for  your  country,  and 
prove  yourselves  sincerely  attached  to  its  interests ;  but, 
if  an  undue  caution  should  prevent  your  doing  this  essen- 
tial service  to  the  colony,   the  total  loss,  both  of  your 
liberties  and  that  very  property,  which  you,  by  retaining 
it,   affect  to  serve,  may  be    the  unhappy  consequence." 
This  is  a  gloomy  description  of  the  pecuniary  condition 
of  the  commonwealth.     They  who  had  cash  could  invest 
it  to   no  advantage  in  business.      If    they  loaned  it  to 
government,  they  could  never  recover  it,  if  the  Revolution 
proved  unsuccessful.     The  hazard  of  such  a  loan  required 
the  exercise  of  no  ordinary  patriotism  to  comply  with  the 
impressive  appeal  of   Congress.     This  compliance,  how- 
ever, was  made  at  a  most  critical  juncture,  and  thus  aided 

'  Lincoln's  Printed  Journal  of  Provincial  Congress. 


MASSACHUSETTS  CURRENCY. 


1G5 


on  their  burdensome  enterprise,  and  subsequently  bene-]775_ 
fited  the  country  a  tliousaud  fold.  ^^^^^ 

As  our   State  is  about  to  be   innncdiately  and  deeply  June 

23 

interested   in  the   paper  currency  of  the    "Continental" 

Congress,  we  shall  have  frequent  occasion  to  make  it  the 
subject  of  notice.  Indeed,  such  are  and  will  be  the 
political  relations  of  our  Commonwealth  to  the  General 
Administration,  that  the  pecuniary  regulations  of  the  latter 
must  have  a  connection  with  the  former.  ^  Driven  by 
stern  necessity  to  the  last  resort  of  means  for  sustaining 
the  conflict  with  Britain,  the  Continental  Congress  order 
an  emission  of  notes  to  the  amount  of  two  millions  of 
dollars.  This  was  the  first  issue  of  bills  ever  made  by 
the  vote  of  delegates  from  the  various  American  Colonies. 
Such  and  other  abundant  emissions  from  the  national 
exchequer,  were  soon  found  too  large  for  the  sustenance 
of  their  own  credit  as  well  as  that  of  the  State's  paper. 
The  form  of  the  national  bills  was  as  follows : 

CONTINENTAL    CURRENCY. 

No.  '      Dollars. 

This  bill  entitles  the  hearer  to  receive  Spanish  milled 
dollars,  or  the  value  thereof,  in  Gold  or  silver,  according 
to  the  Resolutions  of  the  Congress  held  at  Philadelphia 
on  the  lO^/i  day  of  May,  A.  D.,  1775. 

^  The  question  of  making  the  bills  of  other  Colonies  a  28. 
tender  in  all  payments,  as  previously  suggested  by  the 
Committee  of  Safety,  comes  before  the  Provincial  Con- 
gress. This  Body  resolve,  that  such  paper  of  Rhode 
Island  shall  thus  pass  at  6/9  for  an  ounce  of  silver,  and  also 
of  the  rest  of  the  Colonies,  except  Nova  Scotia  and  Canada, 
at  6/8  an  ounce.  They  order,  that  whoever  refuses  to 
take  these  notes  without  some  discount,  "  shall  be  deemed 
an  enemy  to  his  country." 

^As  the  exigencies  of  the  Colony  demand  more  money,    July 
the  Committee  of  Safety  vote  that  £100,000  in  bills  from 
1  to  100  shillings  be  emitted.     This  was  constituted  a 

»  Journal  of  Congress.  3  Committee  of  Safety's  Journal. 

2  Provincial  Congress  Journal. 


6. 


IQQ  HISTORICAL  ACCOUNT  OF 

1775.  tender  in  all  pecuniary  transactions,  as  equivalent  to  specie 
"'""^' at  the  usual  rates,  "under  penalty  of  treble  damages  to 
both  the  payer  and  receiver."     The  form  of  such  obliga- 
tions is  as  follows : 

Colony  of  the       )  j  1775.    iVo.  109. 

Massacliusetts  Baij  ^  ^ 

The  possessor  of  this  Bill,  shall  be  paid  by  the  Trea- 
surer of  this  Colony,  two  shillings  and  six  pence,  lawful 
money,  by  the  ISth  day  of  July,  1777,  a7id  it  shall  be 
received  in  all  payments  at  the  Treasury  at  all  times. 

By  order  of  Congress, 

A.  D.   ^ 

B.  E.  >  Committee. 

C.  F.  ) 

July  1  The  Provincial  Congress  order  a  part  of  the  preceding 
amount  to  be  struck  off. 

29.  2Qf  another  emission  of  Continental  bills,  amounting  to 
$3,000,000,  the  proportion  of  them  is  assigned  to  each 
Colony.  Virginia  and  Massachusetts  are  to  receive  a 
greater  sum  than  the  rest.  The  former  has  $496,278,  and 
the  latter,  $434,244.  It  is  intended,  when  the  matter  can 
be  settled,  to  have  population  the  basis  of  such  a  pecuniary 
appropriation.  It  is  resolved,  "that  each  Colony  provide 
ways  and  means  to  sink  its  proportion  of  the  bills  ordered 
to  be  emitted  by  this  Congress  in  such  manner  as  may  be 
most  effectual  and  best  adapted  to  the  condition,  circum- 
stances, and  equal  mode  of  levying  taxes  in  such  Colony," 
and  that  each  Colony  pay  its  quota  in  four  equal  annual 
instalments,  as  follow — November  30,  1779,  1780,  1781, 
1782. 

The  first  General  Court,  under  the  new  order  of  things, 
being  assembled,  soon  find  themselves  called  to  legislate 

Aug.  for  the  supply  of  the  treasury.^  After  several  weeks  of 
consideration  on  the  subject,  they  authorize  an  emission 
of  £100,000  in  paper.  In  connection  with  this,  the  sub- 
sequent order  is  passed : — There  shall  be  "  on  the  back  of 

*  Journal  of  Provincial  Congress.  ^  Acts  of  Massachusetts. 

*  Journal  of  Congress. 


MASSACHUSETTS  CURRENCY.  jg-y 

each  bill  the  figure  of  an  American  with  a  sword  in  his  1775^ 
right  hand,  with  the  following  inscription  suspended  there-  — — 
from,  viz. — '  Ense  petit  placidam  sub  libertate  quietem,'  and 
from  his  left  hand,  Magna  Charta,  and  round  the  figure 
these  words,  '  Issued  in  defence  of  American  liberty.'  " 
The  circumstances  under  which  this  currency  is  sent 
forth,  are  clothed  with  serious  greatness.  They  embrace 
the  oppressions,  necessities,  purposes,  perils,  hopes  and 
fears  of  a  people,  breaking  from  long  established  relations 
and  setting  themselves  in  aiTay  against  a  mighty  empire. 

The  most  of  the  interesting  device  required  to  be 
stamped  on  the  notes  of  this  emission,  composed  the  Seal 
of  our  State,  as  recently  adopted  by  the  General  Court.  It 
showed  to  the  eye,  that  the  Royal  armorials,  which  were 
long  contained  on  our  public  documents  and  which 
denoted  subjection  to  the  British  Crown,  had  been  de- 
liberately repudiated,  and  others,  exliibiting  emblems  of 
freedom  and  the  sentiment  of  the  patriot,  Sidney,  had 
been  chosen  in  their  stead. 

On  each  bill,  the  names  of  three  persons,  designated  to 
sign  it,  were  to  be  written,  one  with  red,  another  with 
black,  and  a  third  with  blue  ink. 

This  kind  of  paper  received  the  appellation  of  ''  sword 
in  hand  money,"  because  of  the  armed  image  on  its  back. 

As  the  ramifications  of  war  increased  and  extended,  so 
were  om-  public  guardians  compelled  to  try  the  perilous 
experiment  of  swelling  the  amount  of  their  treasury 
secm'ities. 

1  Such  currency,  as  yet,  had  not  faltered.  In  an  Oct, 
intercepted  -letter  of  Doctor  Church  is  the  succeeding  ^^' 
passage  : — '•  The  bills  of  all  the   Colonies  circulate  freely, 

and  are  readily  exchanged  for  cash." 

2  Respecting  an  emission  of  three  millions,  ordered  the   I>ec, 
29th  ult.,  Congress  resolve — "that  the    thirteen   United 
Colonies  be  pledged  for  the   redemption  of  the  bills  of 
credit,  so  directed  to  be  emitted."     Each  Colony  is  to 
have  a  part  of  this  money,  in  accordance  with  their  popu- 

'  Journal  of  the  House.  ^  Journal  of  Congress. 

'  Deciphered  by  Rev.  Mr.  West, 
and  laid  before  the  General  Court. 


168 


HISTORICAL   ACCOUNT   OF 


1775.  lation,  and  to  redeem  their  share  of  it  by  four  equal,  annual 
payments,  the  first  to  commence  November  30,  1783. 

^  In  order  to  sustain  the  credit  of  paper  currency,  which 
begins  to  relax  its  hold  on  public  confidence,  the  Legisla- 
ture are  strict  to  mark  every  individual,  who  declines  to 
receive  it  for  any  pecuniary  obligation. 
31.        Assured  that  there  is  a  confederacy  here  and  in  other 
Colonies,  to  destroy  public  confidence  in  the  paper  cur- 
rency, and  thus  to  encumber  the   progress  of  the  Revolu- 
tion, the  General   Court,  in  compliance  with  a  resolve  of 
Congress,  empower  a  Committee  to  detect  its  authors  and 
have  them  punished  as  enemies  to  the  country. 
March      ^  Anxious  to  extend  the  passing  of  their  bills,  and  thus 
^^'    to   excite  a  sympathy  in  favor  of  their  enterprise,    the 
national  government  devise  various  methods  for  such  an 
object.     As  they  are  about  despatching  Commissioners  to 
Canada  for  the  purpose  of  bringing  over  the  people  there 
to  unite  in  resistance  to  the  Crown,  they  instruct  them, 
among  other  particulars,  "  to  use  every  wise  measure  to 
introduce  and  give  credit  and  circulation  to  the  Continental 
money  in  Canada." 
June       2  As  a  sign  of  the  scarcity  of  specie  as  well  as  of  a 
distrust  in  the  safety  of  paper  money,  strenuous  efforts  had 
been  made  to  raise  £30,000  of  hard  money  in  Massachu- 
setts on  exchange  for  bills,  to  promote  the  expedition  of 
our  forces  in  Canada,  but  with  a  small  and  disheartening 
degree  of  success.     Knowing  that  to  fail  in  this  point, 
would  have  a  disastrous  efi"ect  on  other  operations  of  the 
country,  our  Legislature  make  further  exertion,  and  entreat 
all  who  are  able  to  aid  in  accomplishing  such  an  exchange, 
to  do  it,  and  thus  "  assist  their  distressed  country  in  this 
critical  day." 
Aug.       An  emission  of  bills,  now  ordered  by  Congress,  with 
^^-    what  had  been  already  issued,  amounts  to  $19,000,000. 
The  proportion  of  this  aggregate  sum,  assigned  to  Massa- 
chusetts, is  about  12,750,210. 

Dec.       4  \V"hiie  the  credit  of  the   Union,  in  reference  to  these 
16. 

1  Journal  of  the  House.  ^  Resolves  of  the  General  Assem- 

*  Journal  of  Congress.  bly. 

*  Resolves  of  the  General  Assembly. 


MASSACHUSETTS  CURRENCY.  ]  gg 

notes,  is  far  from  being  a  talisman,  Avliicli  can  demand  and  lyyc. 
punctually  receive  whatsoever  finids  and  supplies  are  "^^ 
needed,  the  credit  of  our  own  Commonwealth,  in  the  same 
respect,  has  not  much  greater  inllnence.  Our  State  au- 
thorities are  obliged  to  intercede  with  the  Committee  of 
Correspondence  in  every  town,  to  open  subscription  hsts 
for  a  loan  of  £100,000,  required  several  months  previously, 
on  the  basis  of  treasury  notes,  at  lawiul  interest.  These 
securities,  though  of  the  safest  kind,  tend  to  the  deprecia- 
tion of  other  paper  currency. 

^Desirous  to  prevent  the  evils  which  threatened  the  D«c- 
currency  of  the  Union,  and  in  accordance  with  a  letter 
from  Governor  TrumbuU  of  Connecticut,  our  Assembly 
appoint  delegates  to  meet  others  on  so  great  a  concern. 
Another  object,  having  a  near  relation  to  the  same  topic, 
for  the  designation  of  these  individuals,  is  to  suppress 
monopolies  and  extravagant  prices  in  the  necessaries  of 
life.  These  prices  were  not  only  enlarged  themselves 
by  the  abundance  of  government  notes,  but  also,  in  con- 
sequence, they  rendered  these  notes  proportionably  less 
and  less  sufficient  to  command  the  supplies  of  maintenance 
and  warfare.  The  Convention,  so  proposed,  soon  assemble 
at  Providence,  Rhode  Island. 

2 Painfully  assured,  that  popular  reliance  on  the  safety  1777. 
of  the  national  bills  was  seriously  shaken  and  enervated,  \^"' 
Congress  declare,  that  so  deprecated  an  effect  had  been 
urged  on  by  enemies  to  American  liberty,  and  that  every 
State  is  obligated  to  put  forth  all  its  energies  to  recover 
the  credit  of  such  money  from  its  downward  progress. 
To  strengthen  and  accomplish  their  proposal,  they  enact 
that  whoever  pays  or  receives  this  currency  at  a  less  rate 
than  originally  prescribed,  besides  being  accounted  a  foe 
to  the  liberties  of  his  country,  shall  forfeit  the  sum  so 
exchanged.  They  also  advise  the  several  States  to  make 
this  paper  a  legal  tender  for  debts,  as  previously  required, 
and  to  provide  that  a  refusal  of  it  in  such  a  mode,  shall 
be  the  extinguishment  of  all  claim.  They  further  suggest 
to    the   States,   that  they  make  preparation  to  discharge 

'  Resolves  of  the  Genernl  Assembly.  -  Journal  of  Congress. 

22 


170 


HISTORICAL  ACCOUNT  OF 


25. 


1777.  their  respective  quotas  of  such  money  emitted  by  order  of 

^■^■^-'■^  Congress,  at  the  precise  periods  specified. 
Jan.  1  In  accordance  with  previous  conference  and  agreement 
with  other  New  England  States,  our  Commonweahh  pass 
an  Act  to  prevent  monopoly  and  oppression.  As  this  docu- 
ment, which  was  to  commence  from  the  28th  of  the 
month,  in  which  it  was  made,  has  a  direct  and  important 
bearing  on  the  currency,  and  shows  what  its  value  was 
generally  estimated  at,  we  make  the  succeeding  extracts  : — 

"  The  price  of  Farming  Labour  in  the  summer  season 
shall  not  exceed  3*  by  the  day  and  found  as  usual,  and  so 
in  usual  proportion  at  other  seasons  of  the  year,  and  the 
labour  of  Mechanics  and  Tradesmen  and  other  labour 
beside  what  is  herein  hereafter  especially  enumerated  in 
proportion  thereunto,  according  to  the  usages  and  customs 
which  have  heretofore  been  adopted  and  practiced  in  this 
State  when  compared  with  farming  labour. 

^^  And  he  it  further  enacted  hy  the  Authority  aforesaid , 
That  the  following  articles  shall  not  be  sold  for  a  higher 
price  than  is  herein  hereafter  settled  and  affixed  to  them 
respectively,  viz. 

"  Wheat.     Good  merchantable  Wheat  at  7'  6-^  per  bushel, 

"i?ye.     Good  merchantable   Rye  or  Rye  Meal  at  5'  a 

bushel. 

^'Indian  Meal.  Good  Indian  Meal  or  Corn  at  4^  a  bushel. 
'' Sheeps'    Wool.     Good   merchantable    Sheeps'    Wool, 

at  2'  lb. 

''Pork.  Fresh  pork  well  fatted  and  of  a  good  quality 
at  4J'^  a  lb.  and  Salt  Pork  in  usual  proportion  according 
to  the  price  of  Salt. 

"  Beef.  Good  well  fatted  grass-fed  Beef  at  3'^  a  lb.  and 
stall-fed  Beef  well  fatted  at  4'i  a  lb.  and  Beef  of  an  in- 
ferior quality  in  equal  proportion. 

"  Hides.  Raw  Hides  at  3'^  a  lb.  Raw  Calf  Skins  at  6*^  a  lb. 

''Salt.  Good  merchantable  imported  Salt,  at  10'  a 
bushel.  Salt  manufactured  from  sea  water  within  this 
State  at  12'  a  bushel. 

'  Acts  of  Massachusetts. 


MASSACHUSETTS  CURRENCY.  ]  7 \ 

<^Rum.  Good  merchantable  West-India  Rum  at  6«  8"^  1777. 
a  gallon  by  the  hogshead,  including  the  cask,  and  C"  10*^ 
by  the  barrel,  exclusive  of  the  barrel,  and  7'  8**  by  the 
single  gallon,  and  2'  by  the  quart,  and  so  in  proportion  for 
a  less  quantity,  according  to  the  former  custom  and  usages 
for  retailing  smaller  quantities,  saving  an  allowance  of  one 
penny  a  gallon  for  every  ten  miles  the  same  shall  be 
carried  by  land  carriage  from  the  first  port  of  delivery. 

'-'■New  England  Rum  at  3'  10*^  a  gallon  by  the  hogs- 
head or  barrel,  exclusive  of  13'  ¥■  for  the  hogshead,  or 
4'  for  the  barrel,  and  4'  6*^  by  the  single  gallon,  at  the 
town  where  the  same  is  distilled,  and  so  in  like  proportion 
for  smaller  quantities,  according  to  the  old  and  approved 
customs  for  retailing  smaller  quantities,  allowing  one  penny 
each  ten  miles  for  every  gallon  that  has  been  or  shall  be 
transported  by  land  from  the  place  of  distillery. 

"  Sugar.  Best  Muscovado  Sugar  at  54'  a  hundred  by 
the  hogshead,  and  £3  by  the  single  hundred,  and  8*^  a  lb. 
by  the  single  pound  at  the  place  where  it  is  first  landed, 
and  allowing  9*^  for  the  transporting  of  every  cwt.  ten 
miles  by  land  carriage.  And  Sugars  of  an  inferior  quality 
in  the  usual  proportion. 

"  Molasses,  of  the  best  quality  at  3'  4*^  a  gallon  by  the 
hogshead,  including  the  cask,  and  3'  8"^  by  the  barrel 
exclusive  of  3'  for  the  barrel,  and  4'  by  the  single  gallon 
at  the  place  where  it  is  first  landed  from  the  West-Indies, 
and  so  in  proportion  in  the  country,  allowing  one  penny  a 
gallon  for  every  ten  miles  transportation  by  land  into  the 
country  or  from  the  place  where  it  is  so  landed. 

''  Cocoa.  Best  Cocoa  at  £6  10'  a  cwt.  American 
manufactm'ed  Chocolate  1'  8*^  a  lb. 

"  Cheese  manufactured  in  America  6^  per  lb. 

^^  Butter  at  10'*  a  lb.  by  the  single  lb.  and  9^  by  the 
firkin. 

^^  Peas  8'  a  bushel.     Beans  6'  a  bushel. 

^^  Potatoes.  Potatoes  commonly  called  Spanish  Potatoes 
of  the  best  quality  at  1'  4^  a  bushel  in  the  fall  of  the 
year,  and  not  more  than  2'  in  any  other  season,  and  other 
Potatoes  in  usual  proportion. 


172 


HISTORICAL  ACCOUNT  OF 


1777.      "  )Slocki7igs.     Men's  best  Yam  Stockings  6'  a  pair,  and 
^■^^""^^  in  that  proportion  for  an  inferior  quality. 

"  Shoes.  Men's  Shoes  made  of  neat's  leather,  of  the 
best  common  sort,  8'  a  pair,  and  for  others  the  hke  price 
according  to  their  size  and  quaUty. 

''Salted  Pork  by  the  barrel,  220  lb.  in  a  barrel,  £4  12^ 

"  Beef.     Beef  by  the  barrel,  240  lb.  in  a  barrel,  £3  14'  6<i. 

"  Cotton.  Cotton  3^  a  lb.  by  the  bag,  and  3'  and  8*^  by 
the  single  lb.  at  the  port  where  it  is  first  landed  from  the 
West-Indies,  and  the  like  allowance  for  transportation  as 
for  other  articles. 

"  Oats.     Oats,  2^  a  bushel. 

''Flax.     Good  well  dressed  merchantable  Flax,  l^  a  lb. 

"  Coffee.     Good  Coffee  1'  4''  a  lb.  by  the  single  lb. 

"  Good  tried  Tallow  7^^  a  lb.  and  rough  Tallow  5*^  a  lb. 

"  Toil)  Cloth.  Good  yard  wide  Tow  Cloth,  2^  and  3'i  a 
yard,  and  other  Tow  Cloth  in  proportion,  according  to  its 
width  and  quality,  and  the  price  of  coarse  Linens  to  be 
computed  after  the  same  rate. 

"  Flannel.  Good  yard  wide  Striped  Flannel,  3'  6^*  a 
yard,  and  other  Flannels  in  proportion,  according  to  their 
widths  and  qualities ;  and  other  woolen  Cloth,  manufac- 
tured in  America,  according  to  their  widths  and  qualities. 

"  Wood.  Green  oak  Wood  brought  from  the  country, 
and  delivered  at  the  door  of  the  buyer  in  Boston  28^ 

"  Good  Walnut  Wood,  so  delivered  30*  a  cord. 

"  Good  Walnut  Wood  brought  from  the  south  shore 
and  delivered  at  a  wharf  in  Boston,  28^ 

"  Good  Oak  Wood,  brought  from  the  south  shore  and 
so  delivered  24^ 

"Eastern  Wood,  in  consideration  of  the  risque  in  bring- 
ing the  same,  22'  delivered  at  the  wharfe  in  Boston. 

"  Charcoal.     Good  Charcoal,  V  a  basket. 

"  Tanned  Hides,  at  1'  3'^  a  lb.  and  curried  Leather  in 
usual  proportion. 

"Homespun  yard  wide  cotton  and  linen  cloth  of  the 
common  sort  3*  6*^  and  other  widths  and  qualities  of  cotton 
and  linen  in  like  proportion. 

"  Mutton,  Lamb  and  Veal,  at  4*^  a  lb. 


MASSACHUSETTS  CURRENCY.  ]73 

^^ Flour,  imported  from  the  southern  States  at  30^  cwt,    1777. 

^^ Flour,  mauulactured  in  this  State  at  25^  ^'"^ 

^^ Horse  keeping,  in  Boston  for  a  night,  or  twenty-four 
hours  with  Enghsh  hay  2^  and  in  other  places  in  propor- 
tion.    For  keeping  a  yoke  of  oxen  the  same  as  a  horse. 

"  Teaming  Work,  1*  6*^  for  every  ton  weight  a  mile, 
excepting  from  North-Hampton  to  the  northern  army,  for 
which  may  be  taken  2'  a  mile  for  each  ton  weight. 

"  Turkeys,  Dunghill  Fowls  and  Ducks,  to  be  sold  only 
by  the  pound,  at  o"^  a  lb. 

"  Geese,  at  4*1  a  lb. 

"Mi7A-,  at  2^*1  a  quart. 

"  Good  Refined  Iron,  at  50'  cwt. 

^^Bloomcry  Iron,  at  30'  cwt.  at  the  place  of  manufac- 
tory, and  the  same  allowance  to  be  made  for  transportation 
of  Iron  by  land  as  is  allowed  for  other  articles. 

"  Liver  Oyl,  by  the  barrel  4'  a  gallon. 

<'  Blubber  refined,  30'  a  barrel. 

"  English  Hay,  of  the  best  quality  at  5'  cwt.  and  so  in 
proportion  for  a  meaner  quality  or  sort  of  hay. 

"  Good  merchantable  White  Pine  Boards  not  to  exceed 
48'  a  thousand  in  Boston,  and  other  lumber  in  proportion, 
and  "the  price  in  other  parts  of  this  State  to  be  in  propor- 
tion thereunto,  according  to  ancient  customs  and  usages." 

^  Having  found  that  it  was  difficult  for  the  loan  officers 
of  this  and  other  States,  to  hire  money  for  the  Union  at 
four  per  cent.,  as  at  first  expected  and  expressed  in  the  cer- 
tificates or  notes,  Congress  vote  to  allow  six  for  all,  which  has 
been  or  may  be  borrowed  on  their  account.  Such  obliga- 
tions formed  no  small  share  of  the  circulating  medium. 

^  In  order  to  obstruct  the  facilities  for  counterfeiting  the  May- 
treasury  notes  of  our  Commonwealth,  the  House  pass  a 
resolve,  that  particular  exertion  be  made  by  some  paper 
maker  to  manufacture  sheets  for  such  money,  and  "  that 
the  word  State,  or  some  other  word,  be  stampt  or  wrought 
in  the  body  of  the  paper  of  each  note,  and  that  said  paper 
maker  shall  oblige  himself  by  oath  never  to  make  any 

1  Journal  of  Congress.  ^  Resolves  of  the  General  Assembly. 


174 


HISTORICAL  ACCOUNT  OF 


1777  more  without  special  leave  of  this  Court."  The  crime 
"^^^^  here  referred  to,  was  considered  peculiarly  aggravated  by 
our  fathers,  because  one  efficient  means  of  encumbering 
their  exertions  for  freedom.  Hence,  they  give  authority 
to  officers  of  justice  to  enter  and  search  any  house,  sus- 
pected of  containing  the  implements  of  such  iniquity. 

Public  sentiment  being  not  yet  sufficiently  purified 
from  the  error  of  supposing,  that  the  Scriptural  allowance 
for  casting  lots  in  certain  cases,  comprised  lottery  chances, 
Congress  resorted  to  the  latter  means  in  order  to  get  some 
May  supply  for  the  national  necessities.  ^  Hence,  among  the 
^^*  varieties  of  paper  currency,  in  that  dark  period,  we  have 
the  subsequent  form,  dated  as  in  the  opposite  margin : 

NUMBER.  DOLLARS.  NUMBER. 

DOLLARS.       The  United  States  of  America  acknowledge 

themselves  to  he  indebted  to  in 

w  dollars,  being  for  prize  of  that  value  drawn  in 

^  £2       the   United  States  Lottery,  which  they  promise 

^  H       to  pay  to  the  said  or  bearer,  on 

w  ^       the  day  of  with  interest  annually 

S  at  the  rate  of  four  per  cent.,  agreeable  to  a  resolu- 

^  tio7i  of  the  United  States,  passed  the  eighteenth 

of  November,  1776. 

June       ^  A  delegation  is  appointed  by  the  Legislature  to  meet 
2^-    others  from  the  rest  of  New  England  and  New  York,  at 
Springfield,  on  the    10th  of  July.     The  objects  of  this 
Convention  were  of  national  concern.     Among  them  was 
to  devise  the  best  method  of  arresting  the  depreciation 
and  counterfeiting  of  the  paper  money,  and  of  having  it 
recalled  by  taxes  or  otherwise. 
July       3  It  is  ascertained  that  the  British  were  strongly  dis- 
3-     posed  to  use  other  weapons  than  those  of  customary  war- 
fare, for  retaining  their  dominion  over  this  country.     A 
large  amount  of  counterfeit  bills,  in  imitation  of  such  as 
were  emitted  by  Congress,  had  been  brought  from  the 
English  ships  into  the  Delaware  and  partly  circulated. 

•  Journal  of  Congress.  ^  Secret  Journal  of  Congress. 

^  General  Court  Records. 


MASSACHUSETTS  CUllREiNCY. 


175 


^  To  throw  up  one  barrier  against  the  fearful  fall  of  our  1777, 
own  bills  as  well  as  those  of  other  States,  it  is  ordered,  ^^7^ 
that,  in   the  place  of  increasing  them  in  this  Common-     9. 
wealth  to  meet  the  charges  of  war,  taxes  shall  be  levied 
and  assessed  on  the  people,  and  be  punctually  collected. 

~  Reduced  to  the  conviction,  that  if  such  paper  should  13. 
be  increased  as  it  had  been,  or  even  if  the  most  of  it 
should  be  allowed  to  pass,  the  energies  of  the  country 
would  be  paralysed,  our  Legislature  prohibit  its  currency 
in  all  sums  over  six  shillings.  One  necessity  which  urged 
on  this  measure,  Avas  that  the  Continental  notes,  which  in 
January  had  depreciated  five  per  cent.,  had  by  this  date 
sunk  so  as  to  pass  three  for  one  of  specie.  This  was  not 
merely  a  rapid  but  a  very  alarming  diminution,  which 
called  for  every  possible  remedy.  As  our  Commonwealth 
could  not  command  the  means  for  speedy  liquidation  of 
the  bills  paid  out  of  their  own  treasury,  it  is  ordered  that 
they  be  exchanged  for  obligations  of  not  less  than  £10, 
with  legal  interest,  payable  annually.  This  was  only 
moving  the  burden  of  public  responsibility  further  ahead,  in 
the  hope  of  a  better  period  for  its  discharge.  In  connec- 
tion with  these  regulations,  no  paper  money  of  other  States 
was  to  be  taken  after  December  first,  on  a  certain  penalty. 
From  the  first  movement  of  our  State  authorities  to  obtain 
pecuniary  supplies  for  the  Revolutionary  struggle,  to  this 
gathering  in  of  their  notes,  they  had  borrowed  £956,400 
on  treasury  securities,  and  issued  £500,042  in  bills  of 
credit.  Besides  this  amount  paid  out  in  two  years,  there 
was  a  large  sum  of  Continental  paper,  received  for  military 
stores  and  service,  circulating  among  our  population. 
However  the  object  of  nullifying  the  credit  of  Massachu- 
setts bills  was  to  invigorate  and  restore  that  of  the  national 
ones,  still  the  sequel  showed,  that  such  an  effect  was  far 
less  than  was  generally  hoped  and  anticipated.  The 
alteration  resembled  that  of  1751,  so  far  as  drawing  in 
the  paper  currency  of  the  Commonwealth,  but  not  with 
so  available  means  and  so  fair  a  prospect  of  preserving  the 
public  credit.     Then  the  price  of  our  Provincial  bravery 

'  Resolves  of  the  General  Assembly.  ^  ^^jg  ^f  Massachusetts. 


l>yQ  HISTORICAL  ACCOUNT  OF 

1777_  and  sacrifices  in  the  capture  and  retention  of  Cape  Breton, 
— "^'"^  as  paid  in  coin  from  the  Royal  exchequer,  was  a  medium 
far  better  to  redeem  sinking  notes,  than  merely  to  return 
one  species  of  them  for  another.  But  when  men  cannot 
do  as  they  would — ^in  reference  to  many  social  concerns — 
they  must  do  as  they  can.  It  was  but  poor  philosophy 
which  induced  Aristotle  to  throw  himself  into  a  river  and 
there  drown,  because  he  could  not  bear  the  disappointment 
of  his  endeavors  to  explain  the  fluctuation  of  the  tides. 
Our  civil  authorities,  though  unable  to  solve  the  numerous 
and  perplexing  questions  which  arose  in  their  councils,  as 
to  the  management  of  their  pecuniary  affairs,  did  not 
suffer  them  to  prove  the  end  either  of  their  life  or  of  their 
efforts.  Though  they  had  no  regal  coffers,  whence  they 
could  draw  the  amount  of  their  public  disbm-sements,  yet 
they  could  look  for  relief  from  the  natural  resources  of  the 
country.  True,  their  expectations  of  help  depended  upon 
the  success  of  their  arms.  True — if  conquered — the 
gloom  of  desolated  credit,  the  loss  of  all  right  to  liquidate 
their  pledges  to  the  lenders  of  the  Commonwealth,  the 
forfeiture  of  every  obligation  for  money  advanced  to  sustain 
the  Revolution,  must  inevitably  follow.  Still,  they  took 
courage  and  did  the  best  their  circumstances  allowed. 
Nov.       1  Massachusetts,  in  common  with  other  members  of  the 

15 

Union,  agree  on  the   articles  of  Confederation,  wherein 

power  is  delegated  to  Congress  to  borrow  money,  issue 
bills  on  the  responsibility  of  the  States  and  regulate  the 
alloy  and  value  of  coin.  By  another  clause  of  the  same 
compact,  all  notes  previously  emitted  and  obligations 
given  by  the  general  administration,  are  to  be  accounted  a 
charge  against  the  whole  country,  for  the  liquidation  of 
which,  the  national  promise  is  to  be  considered  as  solemnly 
and  sacredly  pledged. 
!''•  ^  In  a  circular  to  the  several  members  of  the  Union, 
Congress  speak  of  the  Confederation,  as  the  source, 
whence  they  expected  much  benefit.  They  ardently 
regarded  it,  as  the  restorer  of  their  depreciated  paper  and 
the  supporter  of  public  confidence. 

'  Journal  of  Congress.  ^  Journal  of  Congress. 


MASSACHUSETTS  CURRENCY.  177 

^  An  address  is  made  by  the  same  authorities  to   their  1777. 
constituents.     While  proposing   to  raise  five  milhons  of  ^1^^^ 
dollars  for  the  next  year  by  way  of  tax,  of  which  Massa-     22. 
chusetts  was  assessed  ^820,000,  a  lai-ger  rate  than  that  of 
any  other  part  of  the  Republic,  it  advances  the  succeeding 
ideas    in  relation  to  paper  currency.     To  meet  the  de- 
mands  for  sustaining   our   land  and   naval    forces,  large 
amounts  of  it  had  been  issued  from  the  National  as  well 
as  from  the  State  Treasuries.    In  this  manner  it  was  multi- 
plied beyond  the  limits  of  somid  policy.     It  is  an  assumed 
truth,  that  wherever  the  sum  of  any  currency  "exceeds 
what  is  useful,  as  a  medimii  of  commerce,  its  comparative 
value  must  be  proportionably  reduced."     For  this  cause, 
in  connection  with  efforts  of  open   and  secret  enemies, 
the  overreaching  disposition  of  many  in  community,  and 
the   scarcity  of  foreign   goods,   there   has   been   a  great 
reduction  in  the  value  of  such  paper.     Convinced  that  the 
necessities  of  the  country  could  not  be  supplied  by  this 
medium  of  exchange,  and  the  period  for  its  redemption 
must   come,    Congress    were    constrained,    to    adopt   the 
unpopular  measure  of  laying  heavy  taxes  on  the  inhabit- 
ants.    It  is  also  recommended,  that  all  the  States  call  in 
their  bills  over  one  dollar,  and  depend  on  anrmal  taxation 
to  pay  their  individual  expenses.     It  is  further  advised 
that  they  send  delegates  to  specified  places  for  agreeing 
on  prices  of  labor  and  merchandize,  and  for  suppressing 
monopolies  and  extortion.     Discoursing  in  such  language, 
which   came   from    hearts    warm   with    patriotism,    and 
reached   ears,  not  dull    to   comprehend   its   sad   realities, 
the   address  was  sped,  as  on  eagles'  wings,  through  the 
land.  .  ■ , 

It  is  readily  perceived,  that,  with  regard  to  the  counsel 
in  this  address  of  the  General  Government,  for  each  State 
to  rely  on  assessments  of  property  for  the  payment  of  its 
charges,  and  not  on  factitious  currency,  and  to  gather  in 
all  such  money  exceeding  a  dollar,  Massachusetts  had 
been  beforehand,  and  the  records  of  her  legislation  had 
already  borne  testimony  to  the  wisdom  and  promptness  of 

'  Journal  of  Congress. 

23 


178 


HISTORICAL  ACCOUNT  OF 


1777,  her  action.     It  is  no  flattery  to  say,  that  this  Common- 
-^"^"  weahh  freed  herself  from  the  charge,  once  brought  against 

the  metropohs  of  Italy,  "Rome  dehberates  and  Sagmitum 
perishes." 
Dec.  ^  As  having  a  common  concern  and  participation  in  the 
^'  national  bills,  this  State  is  interested  in  the  attempts  of 
foes  to  the  Union,  for  destroying  all  confidence  in  such 
currency.  An  endeavor  of  this  sort  consisted  in  the 
formation  of  associations,  who  pass  notes  under  the  pre- 
tended authority  of  the  King  of  Great  Britain.  Congress 
resolve,  that  whoever  has  been  deceived  by  such  paper  so 
as  to  take  it  for  genuine,  may  exchange  it  for  that  of  theirs. 
This  Avas  accommodation,  which  strict  justice  did  not 
require,  though  benevolence  for  the  defrauded  did  propose. 

1778.  ^  The   members  of  Congress   from   Massachusetts  are 
^^^^^^^  notified,   that    the   articles   of    Confederation   have  been 

accepted  here.  This  event  is  noticed,  because  it  was  still 
viewed  as  an  omen  for  much  improvement  in  our  pecu- 
niary perplexities.  But  the  same  disappointment,  which 
betided  it,  in  reference  to  the  General  Government,  as 
before  intimated,  was  experienced  by  our  own  Legislature 
as  well  as  people. 

]VIav  ^  Among  the  various  influences,  which  increased  suspi- 
8-  cion  of  the  Continental  paper,  was  the  frequent  allega- 
tion of  friends  to  the  Crown,  that  it  was  worth  nothing, 
and  that  the  debt,  resulting  from  the  diminution  of  its 
value  and  from  charges  of  the  war,  could  never  be  paid 
by  the  inhabitants.  Such  predictions  found  so  many 
believers,  it  was  matter  of  solicitude  with  om*  leaders  in 
the  struggle  for  independence. 

Oct.        '*  As  the  period  was  about  to  close  for  the  redemption  of 
13.     om-  State  bills  of  six  shillings  and  under,  dated  before 
October  IS,  1776,  an  order  is  passed,  that  they  be  returned 
to  the  Treasury  and  exchanged  for  a  new  set. 

Dec.  5  Among  the  rumors,  on  which  eager  and  anxious  curi- 
osity often  dwells  in  times  of  perilous  enterprise,  adverse 
to  the  national  currency,  is   the    one,  that  the   General 

J  Journal  of  Congress.  ■*  General  Court  Records. 

*  Journal  of  Congress.  *  Journal  of  Congress. 

2  Journal  of  Congress. 


29. 


MASSACHUSETTS  CURRENCY.  ]  79 

Administration  neither  meant  to  redeem  it,  nor  to  grant  1773, 
any  allowance  for  it  as  paid   to  the  soldiery.     So  very       -^^ 
serious  an  aspect  did  this  story  assume,  that  such  authori- 
ties felt  themselves  constrained  to  pass  a  resolve,  "that 
the  said  report  is  false  and  derogatory  to  the  honor  of 
Congress." 

Mn  order  to  lessen  the  impression  of  such  tales,  but  1770. 
especially  to  do  as  they  purposed,  our  National  Government  •^^"• 
order,  that  the  States  pay  their  quotas  of  fifteen  millions 
of  dollars  for  the  year  1779,  and,  also,  six  millions,  from 
the  same  date,  annually  for  eighteen  years,  as  a  fund  to  sink 
their  notes  up  to  31st  of  December,  1778.  They  further 
resolve,  that,  as  their  bills,  issued  May  20,  1777,  and  April 
11,  1778,  had  been  extensively  counterfeited,  and  particu- 
larly of  late  in  New  York,  and  spread  through  the  country, 
enhancing  the  price  of  provisions  and  injuring  our  cur- 
rency, such  paper  shall  immediately  cease  to  be  passed. 

2  Deeply  anxious  to  lessen  the  apprehensions  of  the  13. 
public  mind,  concerning  the  fall  of  the  United  States' 
notes,  Congress  mention  their  alliance  with  France  as  a 
ground  for  reasonable  belief,  that  better  days  and  brighter 
scenes  were  at  hand.  But  in  this,  also,  however  they 
were  sincere  in  their  proffers  of  encouragement,  they  were 
to  be  much  disappointed. 

^  In  compliance  with  the  injunction  of  these  authorities,     07. 
our  Legislature  prohibit  the  bills  of  May  20,  1777,  and  of 
April    11,    1778,  from   being   taken   by   their   collectors, 
except  for  Continental  taxes. 

^  As  one  of  the  frequent  occasions  for  our  Commonwealth  Feb. 
to  issue  Treasury  notes.  £200,000  worth  of  them  are  '^^• 
ordered  to  be  given  out  for  the  purpose  of  importing 
provisions.  In  connection  with  this,  a  circular  letter, 
addressed  to  Southern  States,  is  prepared  and  committed 
to  three  agents.  A  passage  from  it  shows  the  afflicted 
condition  of  our  people,  and  how  unfavorable  their  wants 
must  have  been  to  their  monied  concerns.  It  runs  thus : — 
"  This  State  being  almost  wholly  destitute  of  flour  and 

*  Journal  of  Congress.  ^  Resolves  of  the  General  Assembly. 

^Journal  of  Congress.  '•Resolves of  the  General  Assembly. 


IgQ  HISTORICAL  ACCOUNT  OF 

2 779  grain,    the   General   Assembly    are    impelled   by   urgent 
^■^--^  necessity  to  renew  their  application  to  your  State  for  a 
supply   of    these   essential    articles,    without   which   the 
inhabitants  in  general,  and   the   sea  ports   in  particular, 
must  be  reduced  to  a  situation  more  easily  to  be  conceived 
than  expressed."     That  an  appeal  of  this  kind,  specially 
adapted  to  awaken  sympathy  and  meet  the  ready  hand  of 
benevolence,    might   be   more   impressive    and  effectual, 
Congress  are  requested  to  give  it  their  particular  recom- 
mendation. 
April       ^  The  order  of  the  General  Government  for  the  suppres- 
20.    sion  of  the  notes  emitted  in  1777  and  1778,  as  previously 
particularized,    has    greatly    embarrassed    Massachusetts, 
because  a  large  proportion  of  them  had  fallen  upon  their 
hands.     For  relief  in  the  premises,  Congress  is  petitioned 
to  deposit  other  paper  at  the  Loan  Office  in  Boston,  as  an 
offset   to   $800,000   of    such   prohibited   currency.     Our 
delegates  there  are  also  instructed  to  represent,  that  so  low 
are  the  public  finances  here,  and  so  great  the  advances  in 
behalf  of  the  Union,  a  most  urgent  pressure  exists  for  this 
State  to  have  from   the   National    Exchequer  $500,000. 
Our  Legislature  say  to  the  delegates,  respecting  this  mat- 
ter— "The  bearer  is  empowered  to  receive  any  sum  you 
may  obtain,  no  time  may  be  lost  in  returning  him,  as  we 
hourly  suffer  for  want  of  money." 
June       ^  A  document  of  great  importance  to  every  member  of 
11-    the  Confederation  was  ordered  by  Congress  the  26th  ult. 
It  is  now  required  by  our  Assembly  to  be  printed  and  read 
by  all  the  ministers  of  their  jurisdiction,  from  the  pulpit, 
on  the  first   Sabbath  after  it  reaches  them.     The  subse- 
quent passages  from  it  are  here  adduced  : — "  The  present 
situation   of    public    affairs   demands   your   most    serious 
attention,    and,    particularly,   the    great    and    increasing 
depreciation  of   your   currency   requires   the   immediate, 
strenuous  and  united  efforts  of  all  true  friends  to  their 
country,  for  preventing  an  extension  of  the  mischiefs,  that 
have  already  flowed  from  that  source.     For  defraying  the 
expenses  of  this  uncommon  war,  your  representatives  to 

'  Resolves  of  the  General  Assembly.      ^Rggoiyes  of  the  General  Assembly. 


MASSACHUSETTS  CUKREiNCY.  |3J 

Congress  were  obliged  to  emit  paper  money.  They  were  1779. 
very  sensible  of  the  inconveniences  with  which  too  ^^^ 
frequent  emissions  would  be  attended,  and  endeavored  to 
avoid  them.  For  this  purpose,  they  established  loan 
ofiices  so  early  as  in  October,  177G,  and  have  from  that 
time  to  this,  repeatedly  and  earnestly  solicited  you  to  lend 
them  money  on  the  faith  of  the  United  States.  The 
sums  received  on  loan  have  nevertheless  proved  inadequate 
to  the  public  exigencies.  Our  enemies  prosecuting  the 
war  by  sea  and  land  with  implacable  fury  and  with  some 
success,  taxation  at  home  and  borrowing  abroad,  in  the 
midst  of  difficulties  and  dangers,  were  alike  impracticable. 
Hence,  the  continued  necessity  of  new  emissions.  Your 
government  being  now  established,  and  your  ability  to 
contend  with  your  invaders  ascertained,  we  have,  on  the 
most  mature  deliberation,  judged  it  indispensably  neces- 
sary to  call  upon  you  for  forty-five  millions  of  dollars,  in 
addition  to  the  fifteen  millions  required  by  a  resolution  of 
Congress  the  second  of  January  last,  to  be  paid  into  the 
Continental  treasury  before  the  first  of  January  next,  in 
the  same  proportion  as  to  the  quotas  of  the  several  States, 
with  that  for  the  said  fifteen  millions.  Though  it  is 
manifest,  that  moderate  taxation,  in  times  of  peace,  will 
recover  the  credit  of  your  currency,  yet  the  encourage- 
ment wliich  your  enemies  derive  from  its  depreciation  and 
the  present  exigencies  demand  great  and  speedy  exertions." 
Such  were  the  momentous  relations  involved  with  the 
facts  of  this  circular,  and  such  the  inexpressible  interest, 
which  millions  took  in  its  development  of  the  Republic's 
necessities,  perils  and  prospects,  that  no  messenger,  like  a 
Mercurius,  was  wanted  to  herald  it  through  the  country. 
Its  severe  expressions,  as  to  the  Britons,  were  natural 
under  the  exasperated  state  of  passion,  incident  to  a  war- 
fare, whose  object,  on  the  one  hand,  was  subjection,  and, 
on  the  other,  independence.  May  they  never  more  be 
allowed  to  have  occasion  for  being  repeated  to  so  great 
and  generous  a  kingdom.  Gendered  in  a  family  quarrel, 
may  they  always  be  substituted  by  words  of  national 
benevolence  and  Christian  intercourse. 


I  82  HISTORICAL  ACCOUNT  OF 

1779.  The  situation  of  our  general  government,  as  depicted 
"^^  by  their  address,  was  very  far  from  being  enviable.  As 
they  witnessed  the  credit  of  their  paper  on  a  rapid  decline, 
and  learned  that  loans  and  taxes  could  not  be  procured  so 
as  to  supply  its  place,  they  were  forced  still  to  try  the  dep- 
recated experiment  of  renewed  emissions  of  a  similar  cur- 
rency. While  pouring  this  out  like  water,  they  perceived 
with  anguish,  that  its  nominal  abundance  diminished  its 
real  value,  and  left  the  vacuum  of  want  unsupplied,  whose 
sound  continually  came  to  their  ears  like  a  warning 
curfew,  and  whose  cry  increasingly  was,  Give — give. 

Sept.  ^With  such  experience.  Congress  resolve,  that  their 
^-  issues  of  such  money  shall,  at  no  period,  and  under  no 
circumstances,  be  to  a  greater  amount  than  $200,000,000. 
They  had  already  reached  this  proposed  maximum  within 
$40,051,120.  But  time  was  to  prove,  that,  borne  onward 
by  an  irresistible  throng  of  necessities,  they  were  to  break 
over  the  barriers  of  their  own  erection,  and  to  go  far  be- 
yond them.  Thus  have  concurrent  events  often  shown, 
that  the  best  devised  purposes  of  human  wisdom  are  set  at 
naught,  and  the  greatest  efforts  of  human  might  become 
powerless. 
23  ^  A  law,  on  one  of  the  most  absorbing  topics  of  political 
economy,  is  passed  by  our  Legislature.  Its  caption  reads 
thus : — "  Whereas  this  State  are  using  their  utmost  en- 
deavours to  appreciate  the  currency  of  the  United  States, 
and  there  is  great  danger,  that  their  laudable  exertions 
will  be  entirely  defeated,  if  measures  are  not  speedily 
taken  to  prevent  the  inhabitants  of  this  and  the  other 
United  States  from  conveying  articles  out  of  this  State," 
it  is  therefore  enacted,  that  there  shall  be  no  exportation 
of  them,  either  by  land  or  water.  Such  articles  were 
wine,  ardent  spirits,  coffee,  molasses,  sugar,  cocoa,  choco- 
late, cotton  wool ,  sheep's  wool,  wool  cards,  flax,  salt,  linen, 
cotton,  cotton  and  linen,  cotton  and  woolen  goods,  pro- 
visions, shoes,  skins  and  leather.  To  this  interdicted  list, 
steel,  hats,  and  India  teas  were  added  the  ensuing  month. 
Such  a  step  was  taken,  that  the  established  rule  for  the 

'  Journal  of  Congress.  ^  Massachusetts  Laws. 


MASSACHUSETTS  CUIUIENCY.  |  gg 

prices  of  various  goods  might  not  be  evaded,  by  the  trans-  1779. 
portation  and  vending  of  tlicm  in  other  States,  at  a  greater  -^-^^ 
profit,  and  thus  our  own  jurisdiction  be  left  in  distress. 

Congress,  still  subject  to  severe  rebuke  from  every 
quarter,  because  of  the  abundance  and  depreciation  of 
their  bills,  prepared  another  ajjpeal  of  September  13th,  to 
the  people. 

^  This  document  is  required  by  our  Assembly  to  be  Oct. 
read,  as  usual,  from  the  pulpit.  It  represents,  that  all  the 
loans  and  taxes,  from  the  whole  nation,  since  the  begin- 
ning of  the  Revolution,  did  not  amount  to  one  sixth  of 
the  public  debt.  Hence,  it  remarks,  may  the  cause  be 
clearly  seen,  why  the  finances  of  the  country  are  so  much 
embarrassed.  It  computes,  as  the  chief  item  of  such 
debt,  the  bills  of  credit  still  in  circulation,  which  are  esti- 
mated at  i|  159,948,880.  It  then  furnishes  us  with  the 
succeeding  extracts.  The  depreciation  of  this  money  "  is 
always  either  natural  or  artificial.  The  latter  is  our  case. 
The  artificial  depreciation  is  a  more  serious  subject.  A 
distrust,  however  occasioned,  entertained  by  the  mass  of 
the  people,  either  in  the  ability  or  inclination  of  the  United 
States  to  redeem  their  bills,  is  the  cause  of  it.  The 
ability  of  the  United  States  must  depend  on  two  things  ; 
first,  the  success  of  the  present  revolution,  and,  secondly, 
on  the  sufficiency  of  the  natural  wealth,  value,  and  re- 
sources of  the  country.  That  the  time  when  honest 
men  might,  without  being  chargeable  with  timidity,  have 
doubted  the  success  of  the  present  revolution,  we  admit ; 
but  that  period  is  past."  With  regard  to  a  prevalent  fear, 
lest,  if  our  independence  should  be  achieved,  the  claims 
against  the  Republic  would  be  disregarded,  the  appeal 
has  the  subsequent  language.  "  The  redemption  of  these 
bills,  and  the  settlement  of  the  accounts  of  the  several 
States  for  expenditures  or  services  for  the  common  benefit, 
are  among  the  objects  of  this  Confederation,  and  conse- 
quently it  cannot,  so  far  as  it  may  respect  such  objects,  be 
dissolved,  consistent  Avitli  the  laws  of  God  or  man." 
Then  come  the  ensuing  items.     "  In  order  to  prevent  the 

>  Resolves  of  the  General  Assembly. 


184 


HISTORICAL  ACCOUNT  OF 


1779  further  natural  depreciation  of  our  bills,  we  have  resolved 
-— '"^'  to   stop  the   press,  and  to  call  upon  you  for  supplies  by 
loans  and  taxes.     Leave  us  not,   therefore,  without  sup- 
plies,  nor  let  in  that  flood  of  evils,  which  would  follow 
from  such  neglect.     Let  it  never  be  said,  that  America 
had  no  sooner  become  independent,  than  she  became  in- 
solvent, or  that  her  infant  glories  and  growing  fame  were 
obscured  and  tarnished  by  broken  contracts  and  violated 
faith,  in  the  very  hour  when  all  the  nations  of  the  earth 
were  admiring,  and  almost  adoring  the  splendor  of  her 
rising."     Such  solicitude  to  raise  the  fallen  value  of  the 
paper  currency,  by  eloquent  and  rational  arguments,  was 
not  only  cherished  by  our  supreme  authorities,  but  also  by 
the  leading  patriots  of  our  own  and  other  States.     It  was 
a  common  sentiment,  taught  by  ministers  at  the  altar,  and 
cherished  by  themselves,  as  well  as  by  most  of  their  con- 
gregations.    While,  however,  this  solicitude  was  painful 
to  the  heart,  was  read  upon  the  countenance  and  described 
in  words,  the  people  believed,  that  compliance  with  its 
full  dictates  was  more    than  commensurate    with   their 
means  of  self-support,  and  of  annually  liquidating   the 
heavy  charges  of  war,  as  well  as  of  the  national  debt 
already  contracted.     Hence,  it  failed  in  actuating  them  to 
multiply  their  burdens,  already  oppressive.     The  popula- 
tion being  so  situated,  their  delegates  in  the  general  ad- 
ministration were  soon   forced  upon  the  hard  and  only 
choice  of  resorting  to  another  mode  of  paper  medium, 
whose  final  scene  exhibited  wider  and  greater  calamity 
than  that  of  its  predecessor. 
Dec.       ^  As  a  convention  were  to  meet  in  Philadelphia,  the  first 
^^'    Wednesday  of  January,  composed  of  members  from  all 
the  States,  to  consider  the  pecuniary  and  other  interests 
of  the  Confederation,  instructions  are  given  to   Elbridge 
Gerry  and  Samuel  Osgood,  as  Commissioners  of  Massa- 
chusetts, to  that  body.     One  object  of  such  a  meeting,  as 
proposed  by  Congress  the  preceding  month,  was  the  topic 
of  limiting  the  prices  of  produce  and  merchandize,  in  or- 
der to  improve  the  currency.     As  our  Commonwealth  had 

'  Resolves  of  the  General  Assembly. 


MASSACHUSETTS  CURRENCY.  j  g^ 

already  despaired  as  to  the  continued  utility  of  a  similar  1779^ 
plan  in  New  England  and  New  York,  which  was  not  yet  ^^'^'^-' 
nullified,  and  believing  tliat  another  ciibrt  of  the  kind 
would  be  of  little  use,  the  said  gentlemen  are  accordingly 
empowered. 

^  To  supply  their  quotas  for  the  Continental  army,  and  jan. 
act  on  equitable  principles,  the  General  Court  had  agreed,  ^'^' 
that  all,  who  complied  with  the  terms  of  such  enlistment, 
should  have  the  depreciation  of  paper  money,  which  they 
might  take  for  their  service,  made  up  to  them,  at  the  rate 
of  beef  at  3^"^  a  pound,  corn  at  4'  a  bushel,  wool  at  2'  a 
pound,  and  sole  leather  at  1/3  a  pound,  as  designated  in 
the  monopoly  bill.  With  regard  to  this  subject,  which 
had  become  one  of  much  magnitude  and  anxiety  in  the 
minds  of  our  rulers,  they  request  Congress  to  assure  them, 
that  Massachusetts  shall  not  be  a  loser  for  thus  doing  what 
is  right,  and  essential  to  invigorate  their  military  energies 
for  the  national  good.  They  also  forward  to  the  same 
authorities,  a  table  of  the  depreciation,  on  the  basis  of 
which,  they  felt  themselves  bound  to  settle  with  the  war- 
worn soldiery,  or  the  heirs  of  those  whose  blood  had 
sealed  their  patriotism. 

*  Resolves  of  the  General  Assembly. 


24 


186 


HISTORICAL  ACCOUNT  OF 


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MASSACHUSETTS  CURRENCY.  137 

'Letters  are  ordered  by  our  Legislature  for  the  States  of  ]  ygo. 
New  York,  Connecticut,  Rhode  Island  and  New  Hamp- 
shire, on  the  subject  of  the  inland  embargoes.  The  object 
of  these  restrictive  measures  was,  as  previously  denoted, 
to  hinder  the  downward  tendency  of  the  bills  of  credit, 
by  retaining  the  products  and  other  goods  of  each  State, 
within  its  own  territory,  and  having  them  sold  at 
reasonable  prices.  Our  Government  relate,  in  such  com- 
munications, that  they  have  a  bill  before  them  for  the 
repeal  of  their  embargo,  as  recommended  by  Congress, 
August  21,  1779,  and  a  Convention  of  the  five  eastern 
States  the  succeeding  September.  They  observe,  that 
this  bill  would  have  been  enacted,  had  the  four  other 
jurisdictions  done  the  same  ;  but  as  they  have  not,  and 
unless  the  step  of  repeal  should  be  taken  by  all  concerned 
simultaneously,  it  would  have  an  injurious  effect  on  the 
first  taking  it,  they  suspend  their  final  action  on  the 
matter.  As  their  conclusion,  they  say,  "  We  request  an 
early  answer  to  this  letter,  that  we  may  the  sooner  be 
enabled  to  remove  the  inconveniences,  and  prevent  the 
jealousies,  which  embargo  acts  have  a  natural  tendency  to 
produce,  and  speedily  to  restore  unconfined  intercourse  in 
commerce,  which  must  always  operate  to  the  mutual 
advantage  of  the  respective  States." 

~  Still  on  the  alert  to  remedy  the  abounding  evils  of  a  March 

18 
sinking  currency,  Congress  determine  to  try  a  new  method. 

By  such  a  change,  they  are,  at  last,  freed  from  despondency 
as  to  the  past  experiment,  and  are  temporaiily  cheered 
with  the  hope  of  success  in  the  present.  We  could 
heartily  wish,  that  the  fruits  of  their  anticipation  had  been 
more  than  visionary.  But  they  found,  that  let  them  turn 
which  way  they  would  in  this  great  concern,  the  bright- 
ness of  imagination  was  soon  converted  to  the  darkness 
of  adversity.  Of  the  alteration  so  made,  we  have  the 
subsequent  details.  The  States  are  to  pay  the  Continental  • 
Treasury  $15,000,000  a  month.  Forty  dollars  of  the 
national  paper  are  to  equal  one  of  specie,  and  all  of  it 
gathered  in  at  this  rate,  shall  be  consumed.     There  is  to 

'  Resolves  of  the  General  Assembly.        "  Journal  of  Congress. 


188 


HISTORICAL  ACCOUNT  OF 


1780,  be  a  new  emission  of  bills,  equal  to,  and  payable  in  silver 
^^•^^^  and  gold,  within  six  years,  at  five  per  cent.     This  paper 
shall  be  issued  on  the  funds  of  individual  States,  and  the 
promise  of  the  whole  country  pledged  for  the  liquidation 
of  whatever  portion  of  it  any  of  them  may  fail  to  redeem. 
Each  State  is  to  have  a  portion  of  such  notes,  according  to 
its  national  tax,  and  place  them  in  the  Loan  office  there, 
from  which  they  may  be  drawn  completed  for  circulation, 
in  the  proportion  of  twenty  dollars  of  the  old  tenor,  for 
one  of  the  new.     Of  its  quota  of  the  last  money  every 
Commonwealth   is   to   have  six-tenths,   and  the    United 
States  four-tenths,   which  sum  shall  be  credited  to  the 
former  government. 
May        1  In  compliance  with  these  Congressional  instructions, 
^'     Massachusetts    order    an   issue   of  bills,    not   to    exceed 
£460,000.     To  the  general  phraseology  of  this  paper,  as 
applicable  to  all  the  jurisdictions  of  the  Union,  our  Com- 
monwealth add  particulars  suited  to  their  relations. 

Thus  coming  to  the  view  of  the  public,  who  watched 
its  condition  and  bearings  with  eager  curiosity  and  in- 
tense feeling,  as  their  last  hope  of  a  good  paper  currency, 
such  an  emission  passes  ere  long  from  its  source  in  every 
direction. 

As  a  sample,  we  are  presented  with  the  copy  of  an 
original  note  of  this  class,  which  has  survived  the  many 
hands  which  handled  it,  and  lived,  like  an  aged  pensioner, 
to  look  out,  from  its  antique  depository,  upon  the  wide- 
spread blessings  which  it  aided  to  achieve. 

Eight  dollars. 

State  of  Massachusetts  Bay. 

No.  7928.  Eight  dollars. 

The  possessor  of  this  Bill  shall  be  paid  eight  Spanish 

milled  dollars,  hy  the  thirty-firsi  day  of  December,  one 

thouscmd  seven  hundred  cmd  eighty-six,  with  interest  in 

like  money,    at   the  rate  of  five  pel-  centum  per  aimum, 

by  the  State  of  Massachusetts  Bay,  according  loan  Act 

'  Acts  of  Massacliusetts. 


MASSACIIUSKTTS  CURRENCY.  J  89 

of  the  Legislature  of  the  said  State,  of  the  fifth  daij  rt/i780. 

May,  1780.  

Interest.       s    d    q  R.  Cranch, 

Annually,    2    4   3  Tho's  Dawes. 

Monthly,  2    IJ 

Endorsement  on  the  hill. 
The  United  States  insure  the  payment  of  the  within 
Bill,  and  will  draw  Bills  of  exchange  for  the  interest 
annually,  if  demanded,  according  to  a  resolution  of  Con- 
gress, of  the  ISth  of  March,  1780. 

Peter  Boyer. 

However  such  money  came  out  with  all  the  guaranties, 
which  the  General  and  State  governments  could  give  it, 
still,  being  preceded  by  the  wrecks  of  similar  currency,  it 
encountered  no  small  degree  of  distrust.  Not  made  pay- 
able on  demand,  but  the  period  of  its  redemption  put  off 
more  than  six  years,  it  was  not  likely  to  be  secured  against 
a  fall  in  its  par  value.  Such  a  deferring  of  payment 
at  the  Treasury  had  been  one  main  cause,  why  its  kindred 
paper  had  previously  suffered  so  greatly  in  its  credit.  Un- 
der these  unpropitious  circumstances,  the  new  tenor  did 
not  obtain  a  circulation  till  the  first  day  of  August.  On 
this  account,  the  Assembly  subsecj^uently  order,  that  its 
interest  shall  be  estimated  from  such  a  date. 

Some  of  the  most  threatening  objections  to  the  circula- 
tion of  this  emission,  may  be  perceived  m  what  follows. 
Among  the  forces  under  Washington,  much  opposition  was 
manifested    against   the  Continental   bills.      ^  He  writes   May 
from  Morristown,  that  such  an  exliibition  of  their  views     ^^' 
and  feelings,  filled  him  with  deep  concern.     Rochambeau, 
in  a  letter  to  the  Count  de  Vergemies,  observes  that  on  his   ji,]y 
arrival  at  Newport,   the  country  was  in  a  consternation     16. 
about  paper  money,  which  had  fallen  to  sixty  for  one  of 
specie,   and  even  Government  took  it  at  forty  for  one. 
Washington,  in  corresponding  with  Congress  on  this  sub-  Aug. 
ject,  states,  that  an  effort  had  been  made  among  his  troops 

'  Sparks's  Writings  of  Washington. 


]90  HISTORICAL  ACCOUNT  OF 

1780.  to  render  their  notes  altogether  uncurrent  in  the  camp. 
""""""^  On  this  point  he  remarks,  "  Every  method  has  been  taken 

to  counteract  it,  because  such  a  combination  in  the  army 
would  be  a  severe  blow  to  our  declining  currency." 
Issued  under  such  signs  of  resistance  to  the  old  tenor 
notes,  there  is  no  wonder,  that  the  new  should  have  been 
coldly  received,  and  scarcely  admitted  to  the  confidence 
of  the  public. 

Not  only  was  there  a  marked  disaffection  in  the  army 

against  every  kind  of  such  money,  but  also  among  the 

recruits  of  our  Commonwealth. 

Nov.       ^  For  this  reason,  the  Legislature  make  special  applica- 

16.    tion,  and  offer  liberal  encouragement  for  loans  of  gold  and 

silver,  to  pay  their  quota  of  men  for  military  service. 

^By  this  time  hard  money  had  become  plenty  here,  and 
in  other  parts  of  the  country.  Large  quantities  of  it  came 
from  the  French  and  British  forces,  from  Havana  and 
other  foreign  parts,  and  from  prizes  captured  in  the  West 
Indies.  While  it  passed  freely  among  the  population,  not 
a  dollar  of  it  could  be  found  in  the  State  Treasury,  be- 
cause a  thousand  claims  stood  there  unsatisfied,  and  ready 

1781.  to  seize  upon  it,  as  soon  as  its  sound  was  heard.     ^To 
•^^°-    pay  the  interest  due  "  on  public  securities,  and  redeem 

and  destroy  one  seventh  part "  of  the  last  order  of  bills,  the 
Legislature  require,  that  of  a  heavy  tax,  being  £939,075, 
equal  to  specie,  $72,000  of  it  shall  be  collected  in  hard 
money. 
Feb.  "*  As  public  watchmen  for  the  welfare  of  the  community, 
26'  our  political  authorities  make  an  address  to  the  people,  in 
which  they  ingenuously  confess  their  difficulties  on  the 
subject  of  paper  currency.  This  document  furnishes  us 
with  the  subsequent  desires,  opinions,  advice  and  facts. 
Considering  the  failure  of  government  to  sustain  the  credit 
of  their  bills,  there  can  be  no  wonder,  that  the  confidence 
of  the  people  in  it  had  been  shaken.  Still,  as  this  lapse 
was  a  misfortune  and  not  a  crime,  it  is  hoped  that  their 
virtue  and  patriotism  will  lead  them  to  befriend  such  cur- 

'  Resolves  of  the  Assembly.  ^  Resolves  of  the  Assembly. 

2  Bradford's      Massachusetts •*  Resolves  of  the  Assembly. 

Gouge. 


MASSACHUSETTS  CURREiNCY.  |9J 

rency,  as  the  best  means  of  relief  which  sterh  necessity  178I. 
of  circumstances  would  allow.      "  The  value  of  money  ^-^ 
which  is  but  a  representative  of  property,  will  ever  be 
regulated  by  the  connnon  consent  of  the  people  at  large ;  • 
hence  attempts  of   any  Legislature   to   regulate  it  must 
prove  abortive." 

When  the  Assembly  emitted  the  last  bills,  guaranteed 
by  the  United  States,  they  estimated  them  on  a  par  with 
specie,  and  those  preceding  them,  at  one  fortieth  of  such 
value.  But  before  the  former  could  be  thrown  into  circu- 
lation, the  latter  had  sunk  to  seventy-five  for  one.  In  this 
way  the  Commonwealth  were  liable  to  a  loss  of  seven 
fifteenths  of  the  whole  amount  which  was  to  be  issued. 
On  this  account,  the  Treasurer  was  ordered  not  to  pay  out 
one  seventh  of  the  sum  first  intended  for'  circulation. 
The  ^  clause,  which  delayed  the  redemption  of  this  cur- 
rency to  1786,  has  been  lately  repealed,  so  that  the  credi- 
tors of  the  State  may  not  be  liable  to  suffer  in  the  manner 
they  had  been.  While  informed  of  these  things,  the 
people  are  also  told,  that  the  debt  of  the  Commonwealth 
is  £1,200,000.  With  this  bm-den  upon  them,  and  with  a 
full  explanation  of  the  basis  on  which  their  paper  money 
rests,  they  are  exhorted  to  gird  themselves  up  to  their 
necessities,  preserve  equanimity  amid  their  difB,culties, 
discharge  their  several  obligations,  and  believe  that  the 
bow  of  promise  betokened  for  them  a  brighter  £Uid  a  better 
day. 

While  the  old  emission  money  of  Congress  was  legally 
set  at  the  rate  of  seventy-five  dollars  for  one  of  specie  in' 
our  Commonwealth,  it  fell  to  a  hundred  and  twenty  in 
Philadelphia.  This  difference  subjected  our  dealers  to 
great  imposition.  One  marked  case  may  serve  as  a  sam- 
ple : — ^A  noted  merchant  of  Boston  received  a  large  amount 
of  such  paper  from  a  friend  of  his  in  the  former  metropolis, 
with  instructions  to  buy  whatever  saleable  articles  he 
conveniently  could.  Accordingly  he  went  to  the  principal 
stores  which  were  filled  with  dry  goods.     He  pointed  to 

1  The  Acts  for  this  and  the  reten-       uary  2,  1781,  and  were  enacted  the 
tion  of  a  seventh  part  of  the  new       succeeding  10th  of  March, 
tenor  bills,  passed  to  be  enacted  Jan-  ^ 


192 


HISTORICAL  ACCOUNT  OF 


1781.  ^  shelf  of  cotton,  of  linerij  and  so  on,  inquiring  the  price, 
— '^^  and  when  told,  said,  "I  will  take  the  whole  lot."  But 
when  he  came  to  pay  the  venders  in  the  old  Continental 
notes,  they  were  exceedingly  provoked.  Still,  the  law 
afforded  them  no  remedy.  While  the  purchaser  brought 
on  himself  severe  recriminations,  his  friend  in  Philadel- 
phia made  an  enormous  profit  by  the  difference  in  the  rate 
of  such  currency  here  and  there.  Instances  of  this  sort 
aided,  in  this  quarter,  to  bring  its  credit  to  a  speedy  termi- 
nation. 
Marcli  1  Among  the  articles  of  confederation  which  are  now 
formally  agreed  on,  and  to  which  the  eye  of  the  nation 
was  directed — as  a  guide  from  the  mazes  of  their  per- 
plexity— one  grants  to  Congress  the  sole  power  of  regulat- 
ing the  alloy  and  value  of  coin,  whether  struck  by  the 
order  of  individual  States  or  by  their  own. 

^  It  is  with  no  small  uneasiness  of  mind,  that  our  Civil 
authorities  perceive  that  a  large  amount  of  the  Continental 
notes  was  not  recalled  as  it  was  to  have  been  by  other 
States,  and  that  it  is  likely  to  become  altogether  valueless 
among  their  constituents.  For  averting  so  serious  an  evil, 
they  order  notifications  to  be  posted  up  in  all  towns  for  an 
account  of  such  paper  to  be  forwarded,  so  that  they  may 
apply  to  the  General  Government  for  having  it  imme- 
diately redeemed.  Before  taking  this  step,  our  Legislature 
had  called  in  the  quota  of  such  money  assigned  to  them 
by  Congress,  so  that  none  could  cast  into  their  teeth  the 
charge  of  inconsistency. 
9'  ^As  an  evidence  of  the  extreme  emptiness  of  our  State 
treasury  for  public  use  as  well  as  for  private  claims,  we 
give  the  following : — It  appears  that  after  a  session  of 
sorrowful  legislation  with  regard  to  various  topics,  which 
were  much  affected  by  the  embarrassed  condition  of  the 
currency,  the  roll  of  service  was  made  up  for  our  Senators 
and  Representatives.  But  the  word  is,  there  is  nothing  to 
pay  for  their  attendance  and  travel,  the  necessities  of  the 
Commonwealth  have  been  so  urgent,  that  no  cash  remains 

1  Journal  of  Congress.  ^  Resolves  of  tlie  General  Assera- 

^  General  Court  Records.  bly. 


MASSACHUSETTS  CURRP^NCY. 


193 


to  satisfy  the  dues  of  its  Rulers.  They  cahnly  bowed  to  ]  731^ 
the  exigency  and  went  to  their  homes.  Wliile  saying  to  — '' — 
the  people,  the  treasury  is  exhausted  for  you,  they  did  not 
retain  enough  to  meet  their  own  demands.  While  giving 
them  precepts  on  patience,  they  practised  the  same  self- 
denial.  This  is  one  of  the  sunny  spots,  as  to  human 
character,  in  periods  of  prevailing  tribulation,  on  which 
the  mind  loves  to  dwell. 

^  As  compensation  to  the  many  holders  of  our  treasury  March 
notes,  for  not  receiving  their  interest,  when  falling  due,  it 
is  enacted,  that  they  shall  have  annual  compound  interest, 
and  be  exempted  from  all  taxes  on  such  securities.  This 
was  demonstration  of  honest  motives,  though  insolvency 
deferred  the  accomplishment  of  them. 

Owing  to  the  adversity  which  attended  the  plans  and 
operations  of  banking,  as  solely  conducted  by  the  govern- 
ment of  State  or  Nation,  since  the  commencement  of  the 
Revolution,  a  prevalent  desire  of  the  country  at  large  was 
cherished  and  expressed,  that  such  business  might  be  tried 
upon  more  private  responsibility.  But  aware  of  the  long 
and  heavy  troubles  which  had  befallen  several  associations 
of  this  kind  before  their  rupture  with  Great  Britain,  as 
well  as  similar  schemes  of  the  Assembly  in  Massachusetts, 
then  and  afterwards,  the  majority  of  our  population  were 
far  from  greeting  the  proposed  enterprise,  as  one  likely  to 
benefit  the  public.  They  suspected  that  every  pecuniary 
project  of  this  sort,  whatever  aspect  it  might  assume,  could 
not  be  so  essentially  altered  as  to  confer  on  the  community 
a  greater  good  than  evil.  ^  Hence,  when  the  question  is  May 
tried  in  Congress,  whether  the  Bank  of  North  America  ^^* 
shall  have  a  Charter,  our  Representatives  are  numbered 
with  others  in  the  negative.  Still,  this  ^institution  has  a 
majority  there  in  its  favor,  and  with  a  capital  of  !|400,000, 
is  to  be  considered  as  prepared  for  begiiming  business 
when  its  list  of  stockholders  is  completed.  But  whatever 
objections  were  brought  against   this  monied  corporation, 

'  Resolves  of  the  Assembly.  bank    were    finished    December   31, 

°  Journal  of  Congress.  ]7SI,:ind   it  commenced  operations 

^  Subscriptions  to  the  stock  of  this       January  7,  lTdS. 

25 


J  94  HISTORICAL   ACCOUNT   OF 

1781.  it  was  so  judiciously  and  safely  managed,  was  of  so  great 
"  assistance  to  the  General  Administration  in  improving 
their  deeply  embarrassed  finances,  and  in  doing  much  to 
revive  their  prostrate  credit,  that  many  who  dreaded  it  as 
an  instrument  of  enlarging  the  distresses  of  our  country, 
became  its  warm  friends  and  supporters. 

While  this  bank  was  ere  long  to  try  the  doubtful  ex- 
periment whether  the  people  would  receive  its  notes  and 
continue  to  trust  in  them  as  equivalent  to  specie,  we  may 
revert  to  the  amount  and  condition  of  the  old  and  new 
emissions  of  Continental  bills.  ^  The  sum,  which  had 
been  directly  paid  out  of  the  national  treasury  in  the  first, 
was  $357,476,541,  and  that,  which  it  circulated  through 
the  several   State  treasuries  in  the  last,  was  $2,070,485 

May  and  a  fraction.  The  immense  amount  of  the  former  tenor, 
^^'  which  was  still  unredeemed,  and  which  had  sunk  to  five 
hundred  for  one  of  hard  money,  ceases  to  circulate  as  a 
medium  of  exchange.  With  the  strong  current  of  such 
an  example  against  it,  the  latter  or  new  tenor  had  dimin- 
ished in  worth,  so  that  three  of  it  would  bring  only  a 
dollar  in  specie. 

July  ^  Assured  that  it  would  be  worse  than  vain  to  stem  the 
5-  tide  of  prejudice,  which  threatened  to  bear  away  every 
relic  of  confidence  in  the  remaining  public  bills,  our 
Legislature  forbid  them  to  be  presented  as  a  legal  tender 
at  any  rate  whatever.  They  also  release  the  Judges  of 
the  Supreme  Court  from  the  service  of  making  their 
stated  reports  as  to  the  unsteady  value  of  such  paper. 
Thus  we  have  the  recorded  downfall  of  our  chief  national 
currency.  Necessity  drove  our  civil  fathers  to  its  adoption. 
Could  and  would  the  people  have  paid  all  needed  taxes  in 
gold  and  silver,  neither  States  nor  Congress,  with  the 
beacons  of  past  and  bitter  experience  in  pecuniary  con- 
cerns all  around  them,  would  have  ventured  upon  another 
experiment  of  such  a  medium.  They  were  in  the  painful 
alternative  of  either  resorting  to  this  expedient,  or  else 
give  up  the  contest  and  every  hope  of  liberty.  Of  the 
two,  they  preferred  the  less  evil,  though  by  no  means  a 

'  Gouge  on  American  Banking.  ^  General  Court  Records. 


MASSACHUSETTS  CURRENCY.  ]95 

light  one,  and  acted  in  accordance  with  the  decision,  lygi. 
Thus  committed,  they  did  everything  which  the  caution,  ^-^^'^^ 
vigilance,  activity  and  wisdom  of  men  in  their  situation 
could  do.  They  had  already  launched  upon  the  troubled 
waves  of  revolution,  and  sooner  than  return,  they  resolved 
to  improve  the  best  resources  in  their  power,  however  far 
from  being  eligible,  so  that  their  course  might  be  onward. 
Their  feelings  could  harmonize  Avith  the  language  of 
Ovid  : 

"Sero  rcspicitur  telliis,  ubi  func  soluto, 
Currit  in  immensum  panda  carina  salum  ;" 

Or,  "  It  is  too  late  to  look  back  upon  the  land,  when  the 
cable  being  loosed,  the  vessel  is  making  her  way  into  the 
immense  deep."  So  situated,  our  political  authorities 
tried  one  mode  and  another  in  order  to  have  as  small  a 
quantity  of  notes  as  possible  thrown  upon  the  community. 
Still,  call  upon  call,  both  imperative  and  irresistible,  forced 
emissions  from  them,  far  beyond  what  they  expected  or 
even  imagined,  until  their  number  was  hundreds  of  mil- 
lions. Thus  multiplied  and  brought  into  suspicion  by 
many  adverse  incidents,  such  currency  fell  from  one  grade  ' 
to  another,  though  the  whole  country  was  pledged  for  its 
redemption,  until  it  was  brought  so  low,  that  legislative 
interference  cut  short  the  degraded  and  lingering  existence 
of  its  credit.  This  was  an  event  which  did  not  occur 
unnoticed  and  unfelt.  It  sent  a  thrill  of  anguish  through 
many  a  heart,  which,  though  'not  despairing  of  the 
Republic,'  was  deeply  solicitous  for  its  honor  as  well  as 
for  its  success. 

^  As  no  efficient  measures  had  been  taken  to  recall  the  J"ly 
Continental  bills,  which  were  a  surplus  over  what  this 
State  was  obligated  to  redeem,  and  which  had  sunk  in  the 
hands  of  its  inhabitants,  our  Representatives  in  Congress 
are  instructed  to  move,  that  such  paper  may  be  collected 
into  the  treasury  here,  and  charged  against  the  Union. 

^  Though  the  new  tenor  money  had  been  placed  under 
the  ban  of  the  Assembly,  yet  they  feel  responsible  for  their 
quota.     They  empower  the  Collectors  of  State   taxes  to 

'  General  Court  Records.  *  Resolves  of  thePeneral  Assembly. 


196 


HISTORICAL  ACCOUNT  OF 


July 
J  2. 


1781  take   it  at  one  and  seven  eighths  for  one  silver  dollar. 

^^^'^'  This  was  an  allowance  much  more  favorable  than  the 
market  price. 

^  So  completely  had  the  old  tenor  notes  run  down,  that 
scarcely  a  person  would  receive  them  for  the  necessaries 
of  life.  Samuel  Osgood,  one  of  our  delegation  in  Con- 
gress, writes  respecting  it,  from  Philadelphia  to  Harrison 
Gray,  the  Treasurer.  He  relates  that  he  had  taken  the 
liberty  to  draw  for  a  small  sum  of  specie,  and  trusted  that 
this  would  be  approved  by  the  Legislature,  and  adds, 
"  at  present  I  do  not  think  we  can  subsist  without  hard 
money." 

^  Perceiving  that  the  last  emission  still  tended  downward, 
and  was  now  four  for  one  of  specie,  the  General  Court, 
with  the  feelings  of  sorrow,  order  the  Treasurer  neither 
to  issue  nor  take  any  more  of  them  on  loan. 

With  regard  to  this  paper,  and  also  to  the  Continental 
bills,  we  have  the  succeeding  table : 


Sept. 
25. 


Oct. 
1. 


MASSACHUSETTS  SCALE  OF  DEPRECIATION. 

Agreeably  to  a  Law  of  the  Kiate  for  the  settling  of  Contracts,  both  public  and  private, 
made  on  and  since  the  tirst  Day  of  Januar}',  1777. 

O/J*  Hundred  Dollars  in  Gold  or  Silver,  in  January,  1777,  being  equal  to  One  Hun- 
dred arid  Five  Dollars  in  the  Bills  of  Credit  of  the  United  States. 

One  Thoiisavd  Seven  Hundred  and  Seventy  Seven. 


January, 
February, 
March,    . 

103 
107 

WJ 

April,    .     .     112 
May,      .     .     115 
June,     .     .     120 

July,      .     .     125 
August,      .     150 
September,     175 

October,     .    275 
November,     300 
December,     310 

January, 
February,    . 
Marcii,    . 

One 
325 
350 
373 

Thousand  Seven  Hii 
April,    .     .     400 
May,     .     .    400 
June,     .     .    400 

ndred  and  Seveniij  E 
July,      .     .    425 
August,      .     450 
Seplember,    475 

i<;ht. 

"October,    .    500 
November,     543 
December,     G34 

January,    . 
Fel>ruary, . 
March,  .    . 

One 

742 

8(58 

1000 

Thousand  Seven  Hu 
April,  .     .     1104 
May,   .     .    1125 
June,  .     .     1342 

ndred  and  Sevenhj  I\ 
July,    .     .     1477 
August,    .     1630 
September,  1800 

line. 
October,  .    2030 
November,  2308 
December,  2393 

January, 


One  Thousand  Seven  Hundred  and  Eighty. 
2934  I  February,     3322  I  March,     .    3736  1  April, 


4000 


/"row  April  ist,  1780,  <o  April  20th,  one  Spanish  miWd  T>o\\ar  was  equal  to  Yony  of 

the  Old  Emission. 


April  25th, 

.    42 

IVlav  20th, 

54 

June  20th,   .    69 

Nov.  30th.   .    74 

April  30ih, 

.    44 

May  27di, 

.    GO 

August  15th,    70 

February  27lh, 

May  5ih,  . 

.     4(i 

May  30di, 

62 

Sept.  lOih,  .     71 

1781,      .    75 

May  iOdi, 

.     47 

June  10th, 

.    64 

October  15th,  72 

May  13th, 

.   4y 

June  15th, 

.    68 

IMov.  lOlh,   .    73 

One  Dollar  and  seven  eighths  of  a  Dollar  in  New  Emission  equal  to  One  Dollar  in 
Specie  from  the  27lh  of  February,  1781,  to  the  1st  of  May  following;  from  the  1st  to 
the  25lh  of  May,  two  and  one  quarter  of  the  New  Emission  lor  One  in  Specie;  from 
the  25tli  of  May  to  the  15di  of  June,  three  of  the  New  Emission  for  One  in  Specie  ; 
and  from  the  I3th  of  June  to  the  1  si  of  OrfoZ»er,  (bur  of  the  New  Emission  equal  loOne 
in  Specie. 

*  Letter  from  Hon.  Samuel  Osgood.    ^  Resolves  of  the  Gen.  Assembly. 


MASSACHUSETTS  CURRENCY. 


197 


Desirous  to  gather  in  this  currency  before  it  sunk  still  1781^ 

lower,  so  far  as  thev  had  issued  it  on  account  of  this  "T?'^^ 
'  •'  Nov. 

Commonwealth,  the  Assembly  require  it  to  be  exchanged     l. 
at  the  present  rate  for  gold  and  silver,  and  be  no  more 
circulated. 

^However,  the  North  American  Bank  found  little  favor  1782. 
at  its  first  appearance,  in  the  estimation  of  the  public  here,  ^''^'■*"'' 
yet  its   course  had   been  so  beneficial,   the    Legislature 
incorporate  a  branch  of  it  on  behalf  of  Massachusetts,  in 
compliance  with  the  wish  of  the  General   Government. 
A  condition  of  this  Act  is,  that  no  other  similar  association 
shall  be  allowed  in  this  jurisdiction,  while  the  war  lasts 
with  Great  Britain.     The  penalty  of  death  is  also  affixed        ' 
to  the  offence  of  embezzling  the  funds  of  this  branch  by 
any  of  its  officers.     A  resolve  is  passed,  that  the  paper  of 
this   institution  and   the    securities  of   the   Congress,   as 
signed  by  Robert  Morris,  shall  be  received  towards  a  tax 
of  £300,000,  assessed  last  October  on  the  people  of  this 
Commonwealth,  and  also  for  another  of  £200,000,  voted 
the  present  session. 

~  With  regard  to  notes  given  by  the  State  Treasurer,  April 
they  had  not  been  allowed  to  be  less  than  £  10.  But  as 
many  individuals  had  bills  of  a  smaller  value  and  were 
willing  to  have  them  consolidated,  or  the  principal  and 
interest  of  them  added  together,  and  loaned  to  the  Com- 
monwealth, he  is  instructed  to  issue  such  securities  as 
low  as  £3. 

^  Among   the   obligations    from    Massachusetts,    which    Oct. 
served  to  constitute  a  part  of  the  currency,  were  those      °" 
held  by  officers  and  soldiers  for  the  depreciation  of  their 
wages. 

In  a  letter  of  our  Legislature  to  Congress,  they  express  21. 
the  apprehension,  that  if  nothing  be  done  for  the  relief  of 
the  inhabitants  here,  as  to  the  great  sum  of  Continental 
bills  in  their  possession,  which,  had  other  States  done 
their  duty,  would  have  been  liquidated,  there  will  be  a 
serious  deficiency  in  the  national  taxes.     They  write,  at 

'  Acts  of  Massachusetts.  ^  Resolves  of  the  General  Assem- 

'  Resolves  of  the  Gen.  Assembly.      bly. 


198  HISTORICAL  ACCOUNT  OF 

1782.  t^6  same  time,  to  our  Representatives  there,  that  this  Com- 
— '^'  monwealth  had  exchanged  $29,300,000  of  the  national 

paper  money,  and  handed  it  to  the  Commissioner  of  loans 
as  their  very  abundant  proportion.  They  further  assert, 
that  the  amount  of  such  money,  as  other  States  ought  to 
have  redeemed,  and  as  is  now  possessed  by  our  people,  is 
$30,000,000,  besides  a  great  deal  more,  the  account  of 
which  has  not  been  forwarded  to  the  Secretary.  They 
propose  that  the  delinquent  States  pay  into  the  national 
treasury  what  is  their  quota  of  this  sm-plus  at  the  running 
price,  so  that  the  General  Administration  may  have  it 
redeemed  and  be  responsible  to  its  owners. 
Dec.  1  Among  the  sufferings  incident  to  the  fallen  condition 
of  this  paper,  were  those  of  the  war-worn  soldiery.  Those 
of  them  in  the  army  from  this  and  other  States,  thus 
express  themselves  to  Congress,  respecting  the  notes  which 
they  had  taken  as  the  price  of  their  toilsome  and  perilous 
service  : — "  Let  the  present  value  of  those  nominal  obh- 
gations  be  ascertained  by  the  monied  men,  and  they  will 
be  found  to  be  worth  little  indeed ;  and  yet,  trifling  as 
they  are,  many  have  been  under  the  sad  necessity  of 
parting  with  them,  to  prevent  their  families  from  actually 
starving."  Stern  necessity  and  not  design,  on  the  part  of 
Government,  brought  upon  such  men  too  much  of  the 
experience  of  the  noble  Roman,  when  he  was  forced  to 
make  the  petition — "date  obolum  Belisario." 

Small  2  bills  not  over  a  dollar,  are  still  issued  plentifully 
by  our  Commonwealth,  on  its  own  particular  account. 
All  through  the  Revolutionary  contest,  thus  far,  they 
appear  to  have  been  sustained  in  their  credit.  They  had 
an  impression  of  the  rising  sun  upon  them,  as  emblemati- 
cal of  the  ascending  liberty  of  this  and  other  members  of 
the  Union. 

1783.  ^Pqj.  tjjQ  honor  of  their  country  as  well  as  for  doina: 
Feb 

22 '   righteously  by   its  creditors,   Congress  propose   that  the 

several  jurisdictions  of  the  confederation  consent  to  a  pro- 

'  Journal  of  Congress.  ^  Journal  of  Congress, 

^  The  plates  of  these  and  other 
bills  are  still  remaining  in  the  office 
of  the  Secretary  of  State. 


MASSACHUSETTS  CURRENCY.  |C)C) 

portionable  tax.     In  their  appeal  on  this  subject,  prepared  1733^ 
by  Messrs.   Ellsworth,  Madison  and  Hamilton,  their  Ian-  ^-     ^ 
guage  is — "  We  call  upon  the  justice  and  plighted  laitli  of 
the  several  States  to  give  it  its  proper  ellect,  to  reflect  on 
the   consequences  of  rejecting  it,  and  to  remember  that 
Congress  will  not  be  answerable  for  them."     Anxious  for 
the  accomplishment  of  this  plan,  Washington  in  a  few 
months,   gives  it  the  support  of  his  wise  and  eloquent 
circular  to  the  people.     Still,   there   was  no  bond  suffi- 
ciently energetic  between  the  members  of  our  Union,  to 
bring  them  over  to  the  immediate  adoption  of  so  equitable 
a  plan.     Though  om-  own  Commonwealth  harmonized 
with  the  movement  in  general,  they  did  not  in  all  its 
particulars.     They  believed  and  maintained,  that  for  all  to 
receive  their  dues  from  the  national  exchequer,  the  first 
step  should  be,  that  States  which  had  delayed  to  call  in 
their  quotas  of  Continental  bills,  should  henceforth  do  it, 
and  thus  relieve   Massachusetts  and  others,   Avhich    had 
punctually  discharged  this  obligation,  from  the  burden  of 
large  sums  in  such  paper  within  their  respective  limits. 

^As  one  means  for  redeeming  the  national  bills  and  April 

18 
liquidating    other   debts  both  domestic  and  foreign,   the 

General  Government  desire  those  States,  which  have  not 
already  done  so,  to  make  speedy  cessions  of  their  spare 
territory  to  the  Union. 

-Having  watched  the  proceedings  of  the  North  Ameri-  1784. 
can  Bank  and  convinced  of  its  being  decidedly  useful  to    ^^^* 
the   community,  the    Legislature  grant    the   petUion   for 
Massachusetts  Bank,  with  leave  that  it  may  own  property 
to  the  amount  of  £550,000.     This  was  the  first  institu- 
tion of  the  kind,   promoted  solely  by  inhabitants  of  our      .  - 
Commonwealth,  since  that  of  the  silver  scheme  and  of  the 
still  more  unfortunate  I^and  Bank.     While   these    were 
pressed   into  operation   under   the   burden  of   legislative 
displeasure  and  were  doomed  to  resistance  in  almost  every 
direction,  that  was  received  with  public  and  private  favor, 
and  extensively  encom-aged  as  the  instrument  of  promoting 
the  interests  of  trade  and  currency.      Change  of  times 

'  Journal  of  Congress.  "  Acls  of  Massachusetts. 

9 


200 


HISTORICAL.  ACCOUNT  OF 


1784  and  circumstances  thus  began  to  work  a  revolution  in  the 
^""''"^  opinions  of  the  community,  which  has  so  greatly  increased 
as  to  produce  frequent  apprehensions  lest  it  be  carried  to 
ruinous  excess. 
Oct.  1  Seeinff  that  other  States  had  altered  the  value  of  gold 
coin,  so  that  it  was  higher  in  them  than  in  ours,  and  con- 
sequently that  all  of  it  was  likely  to  disappear  from  this 
Commonwealth,  an  Act  is  passed  to  regulate  the  price  of 
it,  as  well  as  of  silver  and  copper  money,  at  the  succeeding 
rates : — The  English  or  French  crown  at  6/8 ;  Spanish 
milled  dollar  6' ;  English  guinea  of  5  dwts.  6  grs.,  28'; 
French  guinea  of  5  dwts.  6  grs.,  27/4;  Portugal  Johannes 
of  18  dwts.,  £4  16;  moidore  of  6  dwts.  18  grs.,  36'; 
four  pistole  piece,  called  doubloon,  16  dwts.  12  grs.,  £4  8. 
The  parts  of  all  these  coins  are  to  pass  in  the  like  ratio 
of  estimation.  The  gold  pieces  of  the  preceding  sorts,  if 
weighing  more  or  less  than  the  aforesaid  standards,  are  to 
be  a  legal  tender  at  £5  6  8  an  omice.  In  addition,  three 
English  farthings  ai'e  valued  at  1*^,  and  English  half-pence 
in  the  same  proportion. 

Though  the  banners  of  war  had  been  furled  and  the 
promises  of  peace  had  blessed  our  country  nearly  two 
years,  still  the  expectation  of  the  people  had  far  outrun 
sober  reality  as  to  the  embarrassments  consequent  on  the 
Revolutionary  straggle.  The  tempest  had  passed,  but  the 
1785.  prospect  bore  many  a  sign  of  its  power.  ^  Among  the 
21  dominant  perplexities  of  the  day,  was  the  deranged  con- 
dition of  our  currency.  As  a  cause  of  it,  Governor 
Bowdoin  assigns  extravagant  importations,  which  leave 
the  balance  of  trade  greatly  against  the  Commonwealth, 
Oct.  and  draw  the  specie  to  foreign  shores.  Another  occasion 
of  such  a  pecuniary  condition  was  the  heavy  tax  still  paid 
by  the  people.  Their  quota  of  the  national  assessment 
this  year  was  $448,854.  Besides,  they  had  annual  in- 
terest of  £88,112  13  3  to  pay  on  their  State  debt  of 
£1,468,554  7  5,  as  well  as  to  meet  the  expenses  of  their 
government.     With  severe  burdens  like  these  resting  upon 

'  Acts  of  Massachusetts.  ^  Resolves  of  the  General  Assembly. 


MASSACHUSETTS  CUIUIENCY. 


201 


the  community,  there  can  be  no  wonclcr  tliat  monicd  con-  1795^ 
cerns  were  imsettled,  mid  at  times  awfully  ominous.  —--*.- 

^  IncUning  more  to  tiie  policy  of  Solon  than  of  Draco,  Nov. 
our  Legislature  modify  the  law  relative  to  the  branch  of 
the  North  American  Bank  in  their  jiu-isdiction.  They 
order,  that  instead  of  death  for  fraud  on  such  an  establish- 
ment, the  one  convicted  of  it  shall  be  sentenced  to  hard 
labor  for  life  or  a  term  of  years,  stand  in  the  pillory  at  one 
or  more  times  and  places,  not  exceeding  three,  have  an 
ear  cropjicd,  whipped  once  or  several  times,  not  above  four, 
each  of  which  not  l)eyond  thirty-nine  stripes,  sit  on  the 
gallows  with  a  rope  roiuid  his  neck,  branded  in  the  fore- 
head with  F,  imprisoned  not  longer  than  a  year,  fined  at 
discretion  of  the  Court,  bound  for  good  behaviour ;  or  to 
any  one  or  more  of  these  punishments,  as  the  nature  of 
the  crime  may  be. 

Doubt  and  darkness  still   hang  upon  the  monied  rela-  178G. 

Feb. 
tions   of  this   and  all  the  States.      -Congress  explicitly     J5' 

aver,  that  the  crisis  has  arrived,  when  the  pco})le  must 
determine  the  momentous  question  whether  they  will 
punctually  pay  the  taxes  of  the  nation,  and  honor  the 
public  faith  at  home  and  abroad,  and  preserve  their  free- 
dom, or,  by  timely  want  of  more  self-denial  and  sacrifice, 
they  will  give  up  the  existence  of  their  Union  and  the 
liberties  they  have  gained. 

■^As  having  a   connection  with  this  subject,  Mr.  Jay  June, 
writes  to  General  Washington : — "  What  I  most  fear  is, 
that  the  better  kind  of  people  wall  be  led,  by  the  insecurity 
of  property,  to  the  loss  of  confidence  in  their  rulers  and 
the  want  of  public   faith  and  rectitude,  to  consider  the    . 
claims   of    liberty   as   imaginary   and   delusive."      '  The     ■ 
Father  of    his  country '  replied,  that  he   feared  a  worse 
state  of  things  was  approaching,  and  that  Congress  must 
have  more  power  for  its  prevention.     While  such  patriots 
thus  spoke,  something  was  meant ;  the  rumbling  of  adverse 
elements  must  have  been  heard,  and  an  eruption  dreaded. 

^  Though   the   last  Continental  bills,  as   issued  by   the    J"'y 

*  • 

'  Laws  of  M;issacluisetts.  ^  Pitkin's    History  of   tliu    United 

-  Journal  of  Congress.  States. 

•»  Resolves  of  the  Gcneiul  Assembly. 

2G 


202 


HISTORICAL  ACCOUNT  OF 


1786.  several   States,  had  been  refused  at  the  treasury  of  our 
"""""^  Commonwealth,  still  they  have  considerable  circulation  at 

the  continued  rate  of  four  for  one  of  specie. 
July  As  coin  was  scarce,  the  Governor  is  requested  to  inquire 
whether  Massachusetts  can  be  supplied  with  copper  and 
silver  coin,  struck  at  the  United  States'  Mint,  when  it 
shall  have  commenced  operation. 
Aug.  ^  With  regard  to  the  few  banking  establishments  in  the 
^'  country,  and  the  apparent  increase  of  desire  for  adding  to 
them,  Washington  writes  to  Thomas  Jefferson — "  Some 
of  the  States  are,  in  my  opinion,  falling  into  very  foolish 
and  very  wicked  plans  of  emitting  paper  money." 
8.  ^  Though  bills  of  credit,  while  issued  by  civil  authori- 
ties, and  sometimes  taxes  had  been,  for  years,  estimated  in 
dollars,  yet  there  Avas  no  law  of  Congress  till  now,  that 
"the  money  of  accounts"  should  be  dollars,  cents,  dimes 
and  mills.  The  same  enactment  orders,  that  the  coins 
made  in  the  United  States'  mint,^  shall  be,  the  cent  and 
half  cent,  of  copper ;  the  dollar,  half  dollar,  double  dime, 
and  the  dime,  of  silver ;  the  eagle  and  half  eagle,  of  gold. 
The  standard  for  gold  and  silver  coins,  is  designated  at 
eleven  parts  fine  and  one  alloy.  The  eagle  of  $10,  is  to 
weigh  246  grams  ^26_8_  ^^^j  go  pro  rata  for  its  half.  The 
dollar  is  to  weigh  375  grains  ^^^,  and  its  parts  in  like  pro- 
portion. A  hundred  cents  of  copper  are  to  weigh  2|  lbs. 
avoirdupois.  The  mint  "*  price  of  a  pound,  Troy  weight, 
of  uncoined  silver  of  the  fine  and  alloy  aforesaid,  is  set  at 
$9  92,  and  of  a  pound  of  uncoined  gold  of  like  mixture, 
is  $209  77. 
Oct.  ^  Being  in  want  of  specie  currency,  and  supposing  that 
the  National  mint  would  not  accommodate  their  constitu- 
ents so  well  as  one  of  their  own,  our  Assembly  vote,  that 
a  like  establishment  be  located  here  for  the  coinage  of 
copper,  silver  and  gold.  Of  the  first  sort  they  order 
$70,000  worth  of  cents  and  half  cents  to  be  made  as  soon 
as  practicable. 

'  Sparks'  Writings  of  Wasliington.  *  This  price  was  raised  to  $13.77.7, 

^  Journal  of  Congress.  October  16,  178G. 

3  This  mint  was  established  Octo-  *  Acts  of  Massachusetts. 
ber  16,  1786,  and  its  officers  chosen. 


MASSACHUSETTS  CURREINCY. 


203 


^  Among   the   several   denominations  of    paper,  which  j  730 . 
serve  as  a  medium  of  exchange,  besides  the  last  tenor  ^^T"^^ 
bills,  are  these  fom', — State,  consolidated,  army,  and  cer-     I. 
tilicate  notes. 

~  Owing  to  disarrangement  of  the  currency,  the  morbid  6. 
desire  for  a  new  issue  of  bills  from  the  Treasury,  the 
burden  of  taxation,  the  loss  of  confidence  in  government, 
the  endurance  of  much  distress,  and,  especially,  to  the 
erroneous  view  of  the  manner  in  which  such  evils  should 
be  remedied,  the  spirit  of  insurrection  shows  fearful  signs 
in  several  of  our  counties.  To  suppress  such  suicidal 
conduct,  the  Legislature  give  the  subsequent  exposition. 
The  debt  of  the  Commonwealth,  on  its  own  account,  is  14. 
£1,320,446  18  2.  It  is  also  answerable  for  its  quota  of 
the  National  domestic  and  foreign  debt,  in  the  sum  of 
£1,532,689  19.  It  has  claims  on  the  United  States, 
which  are  equal  to  what  it  owes  them,  but  as  other  mem- 
bers of  the  Union  have  like  demands,  there  is  not  much 
prospect  of  relief  in  this  respect.  There  is  an  expectation, 
that  the  National  debt  may  be  diminished  by  the  sale  of 
Western  lands  granted  by  Massachusetts  and  other  States 
for  such  a  purpose,  and  that  the  dues  from  this  Common- 
wealth may  be  lessened  by  the  disposal  of  Eastern  lands. 
Though  the  bills  of  credit  and  other  securities  are  at  a 
low  rate,  they  ought  to  be  liquidated.  On  this  point,  the 
Assembly  ask — "  Can  we  be  Avilling  that  the  history  of 
American  Revolution  shall  be  blackened  with  the  tale, 
that  we  refused  to  redeem  the  securities  we  had  given  to 
effect  it,  and  shall  our  posterity  blush  to  hear  of  the  event, 
because  the  perfidy  of  their  ancestors  exceeded  their 
glory?"  In  reply  to  the  dissatisfaction,  which  prevails 
against  the  Commonwealth's  redeeming  its  paper  at  the 
face,  because  depreciated,  they  remark  that  it  ought  to  be 
so  cancelled.  With  regard  to  the  popular  discontent 
because  the  Treasury  did  not  repeat  its  issue  of  bills,  they 
make  the  succeeding  observations: — "A  full  experiment 
of  this  State's  ability  to  uphold  the  credit  of  a  paper 
medium,  was  made  in  the  case  of  the  new  emission ;  the 

'  Resolves  of  the  General  Assembly.        ^  General  Court  Records. 


204  HISTORICAL  ACCOUNT  OF 

1786.  faith  of  the  United  States  and  of  this  State  were  both 
^'^''"^  pledged  for  its  support.     A  fund  was  provided,  sufficient 

to  pay  the  interest,  and,  ahhough  when  it  first  came  into 
circulation  it  passed  at  the  rate  of  one  and  seven-eighths  for 
one ;  interest,  to  a  large  amount  in  silver,  was  paid  upon 
the  nominal  sum,  notwithstanding  which,  at  the  very 
time  interest  was  paying,  the  currency  rapidly  depreciated. 
We  presume  there  is  not  a  man  in  the  State  who  supposes, 
that  if  we  emitted  a  paper  currency  it  would  not  depre- 
ciate, and  if  it  depreciated,  it  will  pass  at  different  rates  in 
different  places  at  the  same  time."  Instead  of  complaints, 
let  econoni}',  temperance  and  virtue  be  practiced.  "By 
such  means  we  may  falsify  the  invidious  predictions  of  our 
enemies,  that  we  should  crumble  to  pieces  and  should  be 
too  corrupt  to  maintain  republican  freedom."  Control  of 
passions  under  these  exciting  and  unpropitious  circum- 
stances, call  for  the  strong  arm  of  self-denial.  Prudence 
and  duty,  both  personal  and  relative,  private  and  public, 
demanded  that  such  submission  should  be  exercised. 
j^Tqy  ^  To  alleviate  the  embarrassed  condition  of  many  who 
15.  had  property  but  could  not  raise  money  to  pay  their  cred- 
itors, a  law  is  enacted  that  the  collection  of  private  debts 
be  suspended  on  certain  limitations.  Sure  and  dreadful 
demonstration,  that  the  foundations  of  a  regular  currency 
were  broken  up,  and  that  nothing  short  of  Legislative 
interference  could  arrest  the  torrent  of  desolation,  urged  on 
by  necessity,  which  heeds  no  appeals  of  indulgence,  and 
rolling  over  the  barriers  of  mercy  and  justice  ! 

1787.  "Notwithstanding  our  political  authorities  showed  all 
Feb.  the  favor  they  could  to  their  distressed  constituents,  the 

banners  of  actual  rebellion  had  been  raised,  and  proclama- 
tion is  accordingly  made.  Such  a  crisis  threatened  to 
accomplish  the  oft  repeated  prediction,  that  the  labor  of 
our  fathers  for  liberty  would  be  lost ;  that  their  immense 
sacrifices  of  treasure  and  life,  for  such  a  boon,  would  all 
be  in  vain;  that  their  bright  anticipations  of  freedom 
would  be  sunk  in  the  horrors  of  civil  warfare,  and  termi- 
nated in  the  thick  darkness  of  tyranny.     But  a  watchful 

'  General  Court  Records.  "  General  Court  Records. 


MASSACHUSETTS  CURRENCY. 


205 


Providence  had  a  better  portion  in  store  for  our'  distracted  jygr. 
Commonwcaltli.  As  is  well  known,  the  forces  which  ''^^ — 
Governor  IJowdoin  ordered  to  march  against  the  insurgents 
were  amply  successful.  One  benefit,  divinely  educed 
from  so  menacing  a  sedition,  as  well  as  from  the  partial 
appearance  of  it  in  New  Hampsiiire  and  Connecticut,  was 
the  more  speedy  adoption  of  the  National  Constitution, 
which  greatly  promoted  the  pecuniary  interests  of  this  and 
every  State,  and  thus  tended  to  raise  community  from  the 
depths  of  discord  and  misery. 

^  After   unexpected  delays,  further   ste})s  are  taken  to  May. 
advance  the  mint  of  Massachusetts.     Joshua  Witherel  is 
empowered  to    have    the  needed   buildings   erected   and 
suitable  machinery  provided.     Part  of  these  works  were 
on  Boston  Neck  and  the  rest  at  Dedham. 

~  By  order  of  the  General  Government,  their  copper  coin  July 
is  to  bear  the  ensuing  devices.  On  one  side,  "  thirteen  ^• 
circles  linked  together,  a  small  circle  in  the  middle,"  with 
the  phrase,  "  United  States,"  round  it,  and  in  the  centre, 
"we  are  one."  On  the  other  side,  a  dial  with  the  hours 
expressed  on  the  face  of  it,  with  "  Fugio  "  on  the  left,  and 
"  1787  "  on  the  right,  a  meridian  sun  above  the  dial,  and 
below  it,  "mind  your  business." 

^  A  Constitution  is  presented  to  Congress  for  the  country,  Sept. 
as  reported  by  delegates  from  the  States,  recently  convened  ^^* 
in  Philadelphia.  It  is  regarded  by  the  friends  of  order 
and  rational  freedom,  as  essential  to  endow  the  National 
Administration  with  power  sufficient  to  repair  and  regulate 
the  system  of  the  currency.  Until  finally  adopted,  it  was 
watched  in  its  going  from  Congress  to  the  individual 
States  for  their  sanction,  and  in  its  returning  thither  for 
full  acceptance,  with  deep  feelings  of  anxiety  as  the  only 
palladium  of  our  liberties.  One  of  its  sections  expressly 
provides,  that  no  State  shall  "coin  money,  enjit  bills  of 
credit,  make  any  thing  but  gold  and  silver  coin  a  tender  in 
payment  of  debts."  This  provision,  with  regard  to  paper 
money,  as  issued  and  conducted  by  Legislative  Treasuries, 
was  taught  in  the  school  of  bitter  and  oft  repeated  adver- 

'  General  Court  Records.     -  Journal  of  Consrrcss.     ■*  Journal  of  Congress. 


206  HISTORICAL  ACCOUNT  OF 

1787,  sity.     It  gave  the  coup  de  grace  to  a  custom,  which  was 
-^^''^^  not  merely  broken  itself,  but  had  brought  on  whole  Prov- 
inces  much   suffering,   with  less  relief,  even  before  the 
Revolutionary  contest. 

1788.  ^  While    the  Constitution  was  under  deliberation  in  a 
Jan.    Convention  of  Massachusetts,  the  eyes  of  the  rest  of  the 

nation  were  directed  towards  them,  and  waited  with 
strong  solicitude  the  result  of  their  debates.  A  reason  for 
this  was,  that  there  were  several  parties  among  our  people, 
who,  it  was  apprehended,  would  not  come  to  a  conclusion 
either  safe  for  themselves  or  the  country.  They  were 
classified  as  follows  : — One,  who  occupied  lands  in  Maine 
without  legal  authority  ;  another  of  the  late  insurgents  and 
their  advocates ;  a  third,  urgent  for  bills  of  credit  and 
tender  laws;  and  a  fiuther,  on  whom  hope  rested  for 
good,  who  were  supporters  of  equitable  government.  But 
among  such  conflicting  elements,  there  was  a  greater 
proportion  of  true  patriotism,  which  preponderated  over 
the  rest,  and  ratified  the  Magna  Charta  of  om*  free  institu- 
tions. 

About  this  time  the  copper  coin, ^ordered  from  the  mint 
of  our  Commonwealth,  begins  to  be  issued.  It  is  familiar 
with  the  earliest  remembrances  and  enjoyments  of  many, 
who  yet  survive.  On  one  face  of  it,  is  the  American 
eagle,  having  in  the  right  talon  a  bundle  of  arrows,  and, 
in  the  left  an  olive  branch,  the  emblems  of  defence  and 
peace  ,*  also,  a  shield  on  its  breast,  inscribed  with  the  word 
"cent,"  being  mostly  encircled  with  letters  of  "Massachu- 
setts," and  having  at  the  bottom,  the  date  of  its  emission, 
1788.  On  the  other  face  an  Indian  of  full  length,  with 
his  bow  and  arrow,  though  much  improved  in  his  personal 
appearance,  considering  his  rude  outlines  on  the  first  seal 
of  our  Colony — with  a  star,  denoting  this  State,  near  his 
forehead,  and  a  circumscription  of  the  word,  "  Common- 
wealth." 

'  Pitkin's  United  States.  with  the  words,  "Nova  Constellatio," 

2  A  copper  coin  had  been  current  around  them.    On  the  other,  a  Laurel 

of  tlie  succeeding  representations: —  wreath,  with  "U.  S."  in  the  middle, 

On  one  side,  a  meridian  sun  in  the  surrounded  chiefly  with  "  Libertas, 

middle,  siiirted  with  thirteen  stars,  Justitia,"  and  "1783." 
and  another  out  of  their  circular  line, 


MASSACHUSETTS  CURRENCY. 


207 


^  Aware  that,  in  compliance  with  the  National  Constitu-  lygg. 
tion,  tlie  right  for  the  States  to  coin  money  had  ceased,  our  ^'^^ 
Assembly  order  that  the  copper  on  hand  for  the  making  of    17. 
cents  be  manulactnred  as  soon  as  possible,  and  then  for  all 
the  workmen  to  be  discharged.    Whatever  this  experiment 
might  have  been,  if  continued  longer,  it  proved  a  very- 
unprofitable  concern.     Of  the  considerable  amount  jjrevi- 
ously  voted  for  being  made  into  cents  and  lialves,  only  a 
few  thousand  dollars  were  manufactured.     Nearly  a  cen- 
tury had  elapsed  since  the  definite  termination  of  our  first 
mint.     This  long  stood  the  storms  of  regal  displeasure, 
while  its  successor  was  of  short  continuance.  1790 

^As  an  object  of  long  desire  and  of  frequent  endeavor  Aug. 
with  Congress,  they  now  agree  on  a  plan  of  settling  the 
claims  held  by  several  States  against  the  national  ex- 
chequer. They  propose  to  open  a  loan  of  $20,500,000 
on  interest.  Of  this,  Massachusetts  are  allowed  to  sub- 
scribe $4,000,000.  This  subscription  may  be  made  in  the 
certificates  to  individuals,  which  had  been  given  for  the 
Continental  bills,  issued  in  1777  and  177S,  some  of  which 
were  thus  exchanged  at  forty  for  one  of  silver  and  others 
at  seventy-five.  It  is,  also,  to  include,  besides  every  other 
obligation  from  the  General  Government,  all  bills  of  the 
same  kind  still  unredeemed,  at  the  rate  of  one  hundred  for 
one  of  specie.  Large  quantities  of  this  money,  being  kept 
beyond  the  limited  period  in  hopes  of  better  terms,  were 
never  exchanged.  Such  a  compromise  has  been  occasion- 
ally charged  with  gross  injustice.  But  there  are  circum- 
stances which  greatly  alleviate  the  weight  of  this  censure. 
When  Congress  began,  and  while  they  continued  to  issue 
bills  of  credit,  they  acted  merely  as  the  directors  of  a  great 
Banking  concern,  owned  by  the  people,  for  whose  accom- 
modation and  benefit  it  was  solely  commenced  and  carried 
on.  But  so  immensely  were  the  debts  of  the  inhabitants 
multiplied  by  the  demands  of  war,  and  so  unable  were 
they  as  a  whole,  to  pay  in  assessments  enough  to  sustain 
the  credit  of  their  paper,  insolvency  came  over  them  like 
an  irresistible  flood.     One  result  was,  that  great  sums  of 

'  Resolves  of  the  General  Assembly.  *Laws  of  United  States. 


208  HISTORICAL  ACCOUNT  OF 

1790.  their  notes  passed  at  two  or  three  hundred,  and,  in  other 
" — '"^  instances,  at  five  hundred  for  one  of  specie.  Their  inch- 
nation  was  strong  to  meet  the  claims  against  them,  but 
their  pecuniary  ability  was  far  too  weak  to  perform  so 
burdensome  a  task.  They  hoped,  that  their  extensive 
lands,  which  were  repeatedly  oifered  for  sale,  would  afford 
them  funds  to  liquidate  a  large  portion  of  their  debt. 
But  in  this,  and  every  other  effort,  they  were  painfully 
disappointed.  At  the  same  time,  large  amounts  were 
accumulating  upon  them  for  the  interest  of  their  foreign 
loans,  which  they  honestly  purposed  to  discharge  and 
subsequently  did ;  and  heavy  burdens  of  taxation  were 
sustained  by  them  to  meet  the  necessities  of  Government. 
Thus  situated,  the  bonds  of  confidence  were  broken,  and 
an  awful  uncertainty  hung  over  the  whole  land.  Had  an 
attempt  been  made,  before  the  close  of  the  Revolutionary 
struggle,  to  vend  every  particle  of  real  estate  in  the 
country,  there  would  have  been  scarcely  a  purchaser,  and 
the  proceeds  would  have  been  but  a  trifle  in  comparison 
with  the  public  responsibilities.  Had  every  farthing  of 
specie  been  collected  from  the  coffers  of  the  rich  and  from 
the  scrip  of  the  poor,  it  would  have  been  but  a  small 
proportion  to  such  obligations.  Where  then  was  the 
physical  power  of  the  nation  to  discharge  their  liabilities  ? 
It  was  found  wanting.  Their  only  means  to  prevent  the 
paper  of  their  civil  authorities  from  being  liquidated  at  a 
much  lower  rate  than  it  was  finally,  was  to  prolong  the 
period  of  settlement.  This,  as  is  well  known,  was  done 
for  seven  years  from  the  cessation  of  hostilities.  After 
such  a  lapse,  the  question  very  properly  comes  up  before 
the  people,  can  we  equitably  lay  upon  our  successors  the 
almost  insupportable  weight  of  debt,  Avhich  will  arise  from 
computing  the  National  obligations  at  their  full  face  of 
principal  and  interest,  or  ought  we  not  to  settle  it  ofi" 
according  to  our  present  views  of  its  real  worth  in  compar- 
ison with  our  ability?  There  is  no  need  to  relate  how 
they  decided  this  dilemma,  through  Congress,  who  were 
the  deputed  organs  of  their  views  on  this  subject.  It  has 
been  already  stated.     According  to  their  decision,  while 


MASSACHUSETTS  CURRENCY.  209 

some  lost,  others  made  great  gain.  While  there  was  a  1790. 
sympathy  for  the  losers,  the  general  consent  was,  that  ^^'^ 
the  necessities  of  our  Republic  called  tliem  to  make  a 
presentation  of  their  loss  on  the  altar  of  freedom.  Could 
the  inhabitants  have  had  a  vision  of  the  prosperity,  which 
was  to  render  their  territory  a  prolific  means  of  revenue, 
to  multiply  their  resources  of  gain,  and  fill  their  towns 
and  cities  with  the  wealth  of  every  clime,  their  opinion 
on  the  subject  before  us  would  receive  a  different  com- 
plexion. But  prescience  to  search  and  divine  the  events  of 
futurity,  was  never  the  allotment  of  their  nature.  For 
aught  they  knew,  aside  from  the  discordant  elements 
among  themselves  ;  being  a  modern  experiment  of  popular 
self-government,  and,  if  likely  to  be  successful  in  their 
attempt,  an  alliance  of  kingdoms  might  be  formed  to  crush 
them  and  add  immensely  to  their  already  too  onerous  a 
debt.  With  their  eye  fixed  on  all  the  relations  of  the 
case,  the  majority  of  our  countrymen  made  up  their 
judgment,  that  equity  required  no  greater  allowance. 
They  sincerely  believed  that  the  declaration,  "The  voice 
of  the  people  is  the  voice  of  God,"  was  applicable  to  their 
conduct  on  this  occasion.  That  the  way  of  their  decision 
was  thronged  with  difficulties,  no  one  can  reasonably 
doubt.  That  any  community  in  their  situation  would 
have  done  better,  there  is  no  just  cause  to  believe. 

^As  holding  a  prospective  relation  to  the  currency  of  1  "9  I . 
Massachusetts,  the  Bank  of  the  United  States,  with  a  05  ' 
capital  of  ten  millions,  is  incorporated.  It  had  a  branch, 
which  commenced  business  in  Boston,  March  16,  1792. 
Though  its  first  predecessor  had  been  opposed  by  our 
delegation  in  Congress,  still  itself  is  favored  by  our  Repre- 
sentatives now  there,  as  bidding  fair,  from  late  experience 
of  such  associations,  to  be  diffusively  useful. 

^In  addition  to  regulations  about  the  coins  issued  from  1792. 
our  national  mint,  there  is  a  small  alteration  made  in  the     ^" 
weight  of  them.     Besides,  quarter  eagles  are  ordered  to 
be  issued.     A  law  is  also  passed  by  Congress,   that  no 
copper  coins,  except  cents  and  half  cents,  shall  be  current,      g, 

'  Journal  of  the  United  States  Senate.         *  Laws  of  the  United  States. 

27 


2J0  HISTORICAL  ACCOUNT  OF 

1792.  Thus  tlie  pennies,  half-pennies,  and  fartliings,  dear  to  the 
"'"^ —  early  associations  of   many  yet   alive,    and  bearing  the 

representation  of  Britannia  and  their  Majesties,  as  well  as 
other  coins  of  several  States,  are  placed  under  the  ban  of 
Legislative  authority.  Now  and  then  the  remains  of  them 
have  come  forth  and  passed  for  a  season,  till  driven  back 
by  new  regulations. 
June  ^  Perceiving  that  the  Massachusetts  Bank  operated  to 
advantage,  the  Legislature  grant  the  petition  of  another 
company  for  the  Union  Bank  in  our  metropolis.  The 
latter  has  many  more  restrictions  than  the  former.  Its 
capital  is  not  to  exceed  ^700,000.  Some  conditions  of 
its  being  allowed,  were,  that  the  State  might  have,  when- 
ever they  wanted,  loans,  amounting,  in  all,  to  $100,000, 
and  own  one-third  of  its  capital,  if  they  chose,  and  that  it 
should  emit  no  bill  less  than  five  dollars.  The  fewness  of 
these  monied  compeers  and  rivals  for  the  golden  fleece, 
drew  upon  them  much  attention,  and  made  their  chief  offi- 
cers to  be  highly  honored,  and  especially  on  gala  occasions. 

1793.  ^An  Act  is  passed  in  Congress,  relative  to  foreign  coins. 
Feb.  It  enjoins,  that  after  the  first  day  of  July,  such  money  in 

silver  and  gold  shall  be  a  legal  tender  for  all  debts.  The 
introduction  of  the  latter  metal  for  such  a  purpose,  was  far 
from  being  attended  with  the  party  views,  feelings  and 
debates,  that  it  was  in  1762.  Samples  of  the  aforesaid 
specie  are  to  be  assayed  at  the  mint,  and  notice  given  by 
proclamation  of  the  President,  as  to  their  weight  and 
worth,  before  they  can  be  so  legalized.  It  is  also  pro- 
vided, that,  in  three  years  from  the  date  when  silver  and 
gold  are  issued  from  the  new  mint,  all  such  metal  of 
foreign  stamp,  except  Spanish  milled  dollars  and  their 
parts,  shall  cease  from  being  an  allowed  tender  for  pecu- 
niary claims.  This  provision,  however,  was  continually 
delayed  by  Congress  from  going  into  operation. 

1794.  ^^^^  accordance  with  the  professions  and  firm  purpose 
Feb.    of  the  Massachusetts  authorities  to  clear  off  the  demands 

of  paper  securities  against  their  Treasury,  they  pass  the 

1  Laws  of  Massachusetts.  ^  Acts  of  Massachusetts, 

^Laws  of  the  United  States. 


MASSACHUSETTS  CURRENCY. 


211 


vsubseqiieiit  law.  Its  preflice  is  in  these  words : — ''  Wliereas  j  794 
the  obhgations  of  good  faith,  as  well  as  justice  to  iiidi-  — -^^ 
vidiials,  and  the  support  of  public  credit,  require  that 
provision  be  made  for  the  debt  due  from  the  Common- 
wealth." It  enjoins  that  for  sucli  a  liquidation,  a  loan  be 
made,  and  books  be  opened  for  subscribers.  It  allows 
that  subscriptions  may  be  made  in  consolidated  and  army 
notes;  and  in  those  given  for  specie  in  1777;  in  certifi- 
cates, issued  by  Nathaniel  Appleton,  the  United  States- 
commissioner  of  loans  in  Massachusetts,  and  in  bills  of 
the  new  emission,  which  began  to  circulate  in  1780. 
The  last  paper  is  to  be  settled  for  at  the  rate  of  four  for 
one  of  specie.  Though  the  proportionate  loss  on  this 
currency  was  far  less  than  that  on  what  were  termed 
Continental  bills,  a  similar  principle  of  liquidation  was 
applied  to  both.  The  same  salvo  for  not  coming  up  to 
the  full  nominal  value  of  such  notes,  bore  comparatively 
on  one  case  as  well  as  another.  Many  bills  of  the  new 
emission,  like  those  of  the  old,  were  kept  back,  in  antici- 
pation of  a  more  favorable  exchange,  and  thus  passed  over 
the  opportunity  for  their  redemption.  As  both  of  them 
are  occasionally  seen,  imagination  views  them  as  fallen 
leaves,  which,  in  the  storm  of  revolution,  gave  protection 
and  nourishment  to  the  blossoms  of  rich  and  durable  fruit. 

^  As  confirmation  of  what  Congress  had  previously  done,  1795. 
our  Legislature  enact,  that,  from  the  first  of  September,  *"®^- 
1795,  dollars,  cents  and  mills  shall  be  the  money  of  ac- 
count in  Massachusetts.  Thus  was  another  remaininar 
custom,  derived  from  our  Enghsh  ancestors,  and  preserved 
in  this  Commonwealth  over  a  century  and  a  half,  struck 
from  our  statute  book,  and  prepared  for  gradual  relin- 
quishment by  the  population. 

-  Isolated  from  the  main,  and  noted  for  their  enterprise  07. 
in  the  whale  fishery,  Nantucket  is  disposed  to  imitate  the 
example  of  the  metropolis,  in  banking.  A  portion  of  its 
inhabitants  accordingly  receive  a  Charter.  Though  al- 
lowed to  emit  bills  less  than  those  of  the  Union  corpo- 
ration, they  are  to  have  none    smaller  than  two  dollars. 

'  Acts  of  Massachusetts.         -  Laws  of  Massachusetts. 


212  HISTORICAL  ACCOUNT  OF 

1795.  They  are  granted  the  option  of  becoming  a  branch  of  the 
— '^^      bank  just  named.     But  they  concluded  it  best  to  stand  on 

their  own  basis. 

1796.  ^Recollecting  the  perilous  distress,  which   had  come 
^'^P'^*  upon  the  whole  country,  in  consequence  of  depreciation 

in  the  national  bills,  Washington  makes  the  ensuing 
remark  in  his  farewell  address.  "As  a  very  important 
source  of  strength  and  security,  cherish  public  credit. 
One  method  of  preserving  it,  is  to  use  it  sparingly." 
These  are  words  of  sound  political  wisdom. 

1797.  ^  Among  the  phenomena  of  banking  at  this  period,  is 
March  ^^^  £v^^^^  ^^^^^  the  Nantucket   Bank,  having  had  a  charter 

for  not  less  than  forty  nor  more  than  one  hundred  thousand 
dollars,  is  permitted  to  have  the  minimum  sum  of  twenty 
thousand,  because  it  had  been  recently  robbed. 
July  ^In  a  Stamp  ^  Act  of  Congress,  provision  is  made,  so 
^'  that  instead  of  banks  paying  a  certain  rate  on  their  bills, 
they  may  pay  one  per  cent,  on  their  dividends. 

^  The  President  of  the  United  States  issues  his  procla- 
mation  on  the  subject  of  coins.  This  document  relates, 
that  the  new  mint  commenced  the  silver  coins  in  1794, 
and  the  golden  ones  in  1795. 
1799^  ^As  the  trade  of  the  country  extended  to  various  parts 
"March  of  the  globe,  and  brought  to  its  shores  an  influx  of  hard 
money,  the  national  administration  endeavor  to  regulate 
it  according  to  its  true  worth.  This  is  work  far  less 
laborious  and  anxious,  than  that  of  reckoning  up  their 
hundreds  of  millions  of  depreciated  paper,  and  despond- 
ingly  calculating  on  the  prolonged  period,  when  it  should 
be  liquidated,  and  having  their  imagination  continually 
haunted  with  spectres  of  ruin.  While  the  one  were 
realities  greater  than  they  had  feared,  the  other  are  frui- 
tions more  than  they  had  expected.  To  the  following 
coins,  as  part  of  our  currency,  they  appoint  their  speci- 
fied  value.      A  livre   tournois   of  France,   18J  cents  ;  a 

'  Washington's  Farewell  Address.  Dec.    1,   1797;   but  it  did   not  till 

2  Acts  of  Massachusetts.  June  30,  1798. 

3  Laws  of  the  United  States.  ^  Seybert's    Statistical  Annals    of 
■*This    law    was   to   have    begun  the  United  States. 

^  Laws  of  the  United  States. 


MASSACHUSETTS  CURRENCY.  213 

florin  or  guilder  of  the  United  Netherlands,  40  cents;  a  1799. 
mark  banco  of  Hamburgh,  33^  cents  ;  a  rix  dollar  of  Den-  ^^'^ 
mark,  100  cents;  a  rial  of  plate,  10  cents;  a  rial  of  vellon 
of  Spain,  5  cents;  a  milree  of  Portugal,  $1  24;  a  tale  of 
China,  $1  48  ;  a  pagoda  of  India,  $1  94;  a  rupee  of  Ben- 
gal, 55^  cents.  They  also  set  the  pound  sterling  of  Great 
Britain,  at  $4  44 ;  and  of  Ireland,  at  $4  10.  They  order 
"all  other  denominations  of  money,"  to  be  "in  value  as 
nearly  as  may  be  to  the  said  rates,  or  the  intrinsic  value 
thereof,  compared  with  money  of  the  United  States."  June 

^As  private  banking  companies  issued  notes  without 
consent  of  our  Legislature,  they  require  them  to  cease 
operations  after  the  first  of  March.  As  the  rule  for  banks 
not  to  emit  bills  lower  than  five  dollars,  had  not  applied  to 
all  of  them,  it  is  now  enacted,  though  still  with  the 
exception  of  Nantucket. 

2 In  renewing  this  law,  so  as  to  apply  without  a  single  1802. 
exception,  the  Assembly  assign  as  a  reason  for  it,  that  Ma^rch 
passing  small  bills  subjected  the  holders  of  them  to  fre- 
quent loss,  and  hindered  the  circulation  of  specie. 

3  As  Governor  Strong  had  stated  to  the  General  Court,  1803. 
that  the  returns  from  the  banks  had  been  very  deficient  ^g""^^ 
as  to  number,  they  resolve  to  have  the  matter  upon  a 
footing  safer  to  community.  They  determine  to  throw 
around  such  associations  a  more  particular  supervisory 
power,  of  which  the  honest  have  no  dread.  They  ac- 
cordingly require  them  to  make  semi-annual  statements 
of  their  true  condition,  to  the  Chief  Magistrate  and  his 
Council. 

^As  having  some  resemblance  to  former  prohibitions 
against  the  paper  of  other  Colonies,  the  Treasurer  of  our 
Commonwealth  is  to  receive  no  bills  of  any  banks  in  other 
States,  except  those  of  the  United  States  Bank,  for  dues 
at  his  office. 

^Some  of  the  most  revolting  features  in  judicial  retri-  1805. 
bution  for  counterfeiting  the  currency,  such  as  branding,     jj^ 

'  Acts  of  Massachusetts.  *  Resolves  of  General  Court. 

*  Laws  of  Massachusetts.  ^  Laws  of  Massachusetts. 

^  Laws  of  Massachusetts. 


214  HISTORICAL  ACCOUNT  OF 

1805.  Stripes  at  the  whipping-post,  standing  in  the  pillory,  crop- 
""^''^^  pii^g  ears,  sitting  on  the  gallows  with  a  rope  round  the 
neck,  are  commuted  by  statute  for  hard  labor  and  con- 
finement during  life  in  the  State  prison.  The  latter  kind 
of  punishment,  under  the  supervision  of  well  principled 
keepers,  and  suitable  religious  instruction,  is  undoubtedly 
preferable  to  the  former  in  its  results  on  the  moral  char- 
acter of  criminals,  and  the  interests  of  community. 
June  ^  Ii^  his  address  to  the  Legislature,  Governor  Strong 
^'  calls  their  attention  to  the  subject  of  banking.  The  sub- 
stance of  his  remarks  is  as  follows.  Such  business,  while 
properly  restricted,  would  be  beneficial  as  the  means  of 
affording  to  capital  a  more  active  operation.  Almost  every 
session,  for  several  years,  petitions  have  been  presented 
for  companies  of  this  kind.  It  is  a  question  whether,  if 
any  more  of  them  were  allowed,  they  would  promote  the 
public  good.  Large  amounts  in  notes  of  banks,  belonging 
to  other  States,  and  whose  situation  is  unknown  here,  are 
passing  among  the  population.  Besides  the  branch  of  the 
United  States  Bank,  there  are  twenty-one  such  associa- 
tions in  Massachusetts,  which  are  privileged  to  issue 
thirteen  millions  of  dollars,  but  at  their  last  reports,  had 
only  eight  millions  due  them.  This,  his  Excellency  con- 
sidered as  an  argument,  why  they  should  not  be  enlarged 
at  present.  Of  the  number  mentioned  by  him,  four  be- 
longed to  the  District  of  Maine.  Had  the  caution  which 
he  and  other  rulers  have  repeatedly  and  wisely  given, 
been  more  heeded,  it  would  have  been  well  for  the  habits 
and  possessions  of  community.  Neglect  of  it  has  more 
than  once  contributed  to  bring  multitudes  into  the  deep 
waters  of  adversity.  Even  the  bitter  experience  for  dis- 
regard of  such  counsel,  has  been  too  often  unnoticed  amid 
the  dazzling  splendor  of  temporary  prosperity.  Still,  the 
reasons,  which  originated  the  caution  of  Governor  Strong, 
especially  in  connection  with  the  policy  of  England  and 
France,  which  began,  the  next  year,  to  emit  orders  against 
our  commerce,  and  that  of  other  neutral  powers,  tended 

'  Speech  of  Governor  Strong. 


MASSACHUSETTS  CURRENCY.  215 

to  suppress  and  defer  applications  for  bank  charters.    Only  isos. 
one  of  a  small  capital  was  granted  for  several  years. 

'  It  being  the  popular  voice,  that  bank  notes  of  denomi-  J>'1'« 
nations  smaller  than  five  be  allowed,  a  law  is  passed,  that 
such  paper,  of  one,  two  and  three  dollars  may  be  issued. 

To  increase  the  restrictions  on  banking  companies,  their 
returns  to  the  Executive,  are  ordered  to  be  made  under 
the  solemnities  of  an  oath. 

-As  a  comparative  example  of  the  credit  given  to  the  1807. 
securities  of  the  Commonwealth  and  of  the  banks  in  its  g  °" 
limits,  we  have  the  succeeding  prices : — June  26,  1802, 
State  notes  at  95  per  cent.,  those  of  the  Union  Bank  at  36, 
and  of  the  United  States  Branch  at  47  advance.  October 
15,  1803,  State  at  98,  Union  at  30  advance,  Massachusetts 
30,  and  Boston  at  17.  At  the  date  of  this  paragraph  in  the 
margin,  the  Union  12,  Massachusetts  13,  Boston  10,  and 
the  United  States  20  above  par. 

3 Having   our   foreign   trade    almost   destroyed   by  the  1808. 
nominal  blockades  of  England  and  France,  and  being  at      g^ ' 
last  reduced  to  the  necessity  of  an  embargo  for  the  preser- 
vation of  our  imperiled  commerce,   our  currency  has  to 
encounter  difficulties  and  depression. 

^For  the  purpose  of  having  uniformity  in  our  bank  bills  1809. 

lVTfii*p}i 

as  well  as  to  prevent  counterfeiting  them,  they  are  re-  ^ 
quired  to  be  struck  from  the  stereotype  plate  prepared  by 
Jacob  Perkins.  Though  this  ingenious  invention  of  his 
did  not  liave  the  full  effect  anticipated,  yet  it  has  been 
useful  and  has  continued  to  retain  its  hold  upon  public 
estimation.  Its  durability  has  far  outrun  that  of  many 
devices  for  a  like  purpose.  While  these  were  tem- 
porarily extolled,  that  has  deterred  many,  by  the  diffi- 
culty of  its  being  imitated,  from  an  attempt  to  falsify 
our  bills,  and  has  thus  saved  them  from  the  pains  and 
penalties  of  actual  crime. 

^  To  show  the  rates  of  discount  at  which  foreign  money,    Nov. 
so  termed,  and  for  a  considerable  period  an  expression  of 
no  very  pleasant  sound  to  the  debtor  on  his  pay  day — 

'  Laws  of  Massachusetts.  ''  Laws  of  Massachusetts. 

-  Cohinibian  CentineL  *  Columbian  Centinel. 

^  Governor  Sullivan's  Speech. 


216 


HISTORICAL  ACCOUNT  OF 


1 809.  passed  for  Boston  bills — we  give  the  subsequent  minutes : — 
-^''^^  Lincoln  and   Kennebeck  Bank  bills  at  3  per  cent.,  Hal- 
lowell  and  Augusta  2  to  3,  Penobscot  12|^,  and  Northamp- 
ton 12.     The  discount  on  various  bank  notes  out  of  the 
State,  was  greater  than  what  is  just  stated. 

1812.  1  After  severe  debates  of  political  parties,  after   great 
14^     losses   incurred    from    domestic   restrictions   and   foreign 

sequestrations,  and  in  prospect  of  entering  into  a  war, 
our  General  Government  resort  again  to  treasury  notes. 
These,  as  constituting  a  species  of  our  currency  at  various 
periods,  are  ordered  to  be  issued  for  a  loan  of  eleven  mil- 
lions, on  a  credit  of  twelve  years,  and  at  six  per  cent, 
interest.  While  they  were  emitted,  there  were  yet  others 
remaining  for  a  portion  of  the  debt  contracted  in  our 
Revolutionary  struggle.  They  were  the  more  needed, 
from  the  fact,  that  the  National  Bank,  which  had  con- 
ducted the  monied  operations  of  the  Union,  was  to  have 
its  charter  repealed  in  a  few  days. 

June       2  QQj-^gtj.a^ij^g(j  ^q  resort  to  other  means  than  those  afforded 
23. 

by  peace  and  prosperity,  to  meet  the  charges  of  the  Com- 
monwealth, the  General  Court  lay  a  tax  on  the  stock  of 
our  banks,  at  a  half  per  cent,  semi-annually. 

Convinced,  that  amid  the  adverse  appearances  of  this 
period,  there  are  more  banking  companies  than  are  promo- 
tive of  the  general  benefit,  our  Legislature  enact,  that 
such  of  them  as  have  charters  limited  to  or  before  the  last 
of  October,  shall  not  be  reincorporated.  At  the  same 
time,  these  associations  are  allowed  four  years  from  the 
expiring  of  their  charters,  to  settle  their  affairs. 
30.  ^  Congress  authorize  another  emission  of  treasury  notes 
for  a  sum  of  five  millions.  These  are  transferable,  and  to 
be  redeemed  in  a  year,  at  5f  per  cent,  interest.  Such 
issues  were  continued,  as  the  National  Administration  had 
need  for  them. 

1813.  "^The  speech  of  Governor  Strong  refers  to  the  distressed 
J=iQ-   condition  of  many  merchants,  in  consequence  of  the  war. 

It  states  that  they  have  become  impoverished  and  incapa- 

'  Laws  of  the  United  States.  ^  Laws  of  the  United  States. 

*  Laws  of  Massachusetts.  ■*  Governor  Strong's  Speech. 


MASSACHUSETTS  CURRENCY. 


217 


bio  of  meeting  the  demands  against  them.     It  suggests  i  g  i  ,3 
that  a  legislative  mode  may  be  adopted  for  their  relief,  --"^'^ 
which,  while  not  tolerating  extravagance  and  fraud,  will 
guard  them   against   undue    severity  from   creditors.     A 
representation  of  this  sort,   too  distinctly  betokens  how 
straitened  must  have  been  the  modiuni  of  exchana:e. 

Among  the  monied  incorporations  of  our  Common-  June 
wealth,  which  deserves  particular  attention  for  its  proles-  ^^* 
sion  and  practice,  is  the  New  England  Bank,  now  granted. 
Its  name  is  significant  of  its  purpose — to  befriend  and 
benefit  New  England  banks  in  their  currency.  When 
commencing  business,  it  found  that  bills,  called  foreign 
because  not  issued  in  Boston,  were  subject  to  a  discount 
from  three  to  five  per  cent.  To  rectify  an  evil  so  great 
to  most  of  the  banks  and  many  individuals — for  scarcely 
a  dollar  of  Boston  paper  could  be  seen,  being  laid  aside 
for  profitable  speculation — the  New  England  Bank  imme- 
diately gave  out,  that  it  would  charge  only  the  expense  of 
having  foreign  bills  carried  to  their  respective  banks,  and 
the  proceeds  returned,  to  all  who  wished  to  avail  them- 
selves of  such  an  arrangement.  The  result  was,  that  it 
had  long  and  frequent  occasions  for  such  a  "labor  of  love." 
By  such  means,  it  very  soon  brought  down  the  difi'erence 
of  exchange  between  foreign  and  current  bills,  to  a  half  per 
cent.  So  the  same  institution  did  with  regard  to  drafts. 
It  found  merchants  and  traders  subject  to  exorbitant  per 
centage  for  such  scrip  on  the  south.  By  merely  charging 
the  cost  of  getting  them  cashed,  it  speedily  brought  them 
into  a  favorable  train.  Of  such  benefactions,  it  should  not 
be  said,  they  "are  but  born  to  die." 

^  As  one  method  of  contributing  to  the  public  disburse-  Aug. 
ments.  Congress  order,  that  a  tax  be  assessed  on  bank  ^' 
notes  according  to  their  sum.  In  lieu  of  this,  they  appoint 
that  one  and  a  half  per  cent,  be  taken  on  the  amount  of 
the  annual  dividend.  The  latter  mode  appears  more 
equitable  than  the  former.  It  is  indeed  a  hard  case  for 
stockholders — while  receiving  no  dividend  for  the  circula- 
tion of  their  bills,  because  of  losses,  nor  able  to  dispose  of 

•  Laws  of  tlie  United  States. 

28 


218  HISTORICAL.  ACCOUNT  OF 

1813.  their  shares,  except  at  great  discount  and  still  liable  to 
"^"■^"  have  them  municipally  taxed — to  pay  any  sum,  except  a 

fair  one,  on  the  real  income  of  their  banks.  A  system, 
the  reverse  of  this,  borders  too  much  on  Egyptian  policy, 
which  exacted  the  full  tale  of  brick  without  straw. 

1814.  i^s   an   extraordinary   subject    for    consideration,   the 

Tin 

27.'  Legislature  hear  a  report  on  the  memorial  of  the  New 
England  Bank  in  Boston.  The  particulars  of  the  case 
are  thus  narrated : — This  bank  sent  on  to  certain  banks  of 
New  York  their  bills,  amounting  to  ^138,874,  to  be  ex- 
changed for  specie.  The  business  was  accordingly  done. 
This  silver  was  put  into  three  wagons,  which  proceeded 
on  their  way  hither  as  far  as  Chester,  fourteen  miles. 
There  they  were  seized  by  order  of  the  Collector  of  New 
York,  commanded  back  and  the  money  deposited  in  the 
vaults  of  the  Manhattan  Bank,  of  which  he  was  a  director. 
Though  a  protest  was  handed  to  him  against  such  a 
course  as  illegal,  by  the  agent,  yet  he  declined  to  alter  his 
purpose.  He  assigned  as  a  reason  for  this  procedure,  that 
he  suspected  such  cash  was  going  to  Canada.  Many  this 
way  supposed,  that  he  was  chiefly  actuated  by  dislike 
to  the  frequency  with  which  the  New  England  Bank 
despatched  large  sums  of  the  New  York  Bills,  which 
flooded  Massachusetts,  to  be  redeemed  with  dollars.  On 
being  made  acquainted  with  these  facts,  the  General  Court 
resolve  that  the  conduct  of  the  Collector,  in  this  respect, 
is  a  violation  of  his  duty  and  an  infringement  on  the 
rights  of  the  New  England  Bank.  They  also  decide,  to 
have  the  matter  ^  laid  before  the  President  of  the  United 
States  with  the  expression  of  their  judgment,  that  the 
Collector  had  committed  an  outrage  on  one  of  their  Cor- 
porations, ought  to  relinquish  the  deposit,  and  be  dismissed 
from  his  ofiice.  Such  an  application  so  far  succeeded  as 
to  have  the  money  restored. 

May  3j^giative  to  a  repeal  of  the  embargo,  as  a  measure 
promising  relief  to  the  monied  interests  of  the  community, 
the  House,  in  an  answer  to  the   Governor's  speech,  thus 

'  Resolves  of  Massachusetts.  this    subject,  be    laid    before    their 

*  It   is    ordered    by    the    General  Body  the  next  session. 

Court,  February  28, 1814,  that  papers  ^  Resolves  of  Massachusetts. 

and  memorials  from  many  towns,  on 


MASSACHUSETTS  CURRENCY.  219 

express  themselves : — ''We  hail  it  as  the  harbinger  of  a  1814. 
better  day."  Their  anticipation,  however,  is  to  be  severely  ^-^^^^ 
tried  and  deferred. 

The  shares  in  the  Union,  Boston  and  Massachusetts  Aug. 
Banks  of  the  metropolis,  having  been  in  1810,  IS,  17  and 
28  per  cent,  advance,  and  in  1811,  the  two  first  at  par 
and  the  last  20  above,  and  in  1812,  the  same  two  at  4 
advance  and  the  last  10;  and  in  1813,  the  three  from  13 
to  15,  are  now  from  5  to  10  above  par. 

^  Owing  to  the  depressed  condition  of  commerce  and  Sept 
other  branches  of  trade,  and  particularly  to  the  loans  of 
their  bills  to  the  National  Treasury,  much  beyond  their 
hard  money  to  redeem  them,  the  southern  banks  suspend 
specie  payments.  While  they  and  the  communities  con- 
nected with  them,  are  suffering  from  this  event,  the  banks 
of  Massachusetts  and  other  New  England  States  are  able 
to  grapple  with  their  difficulties  and  escape  so  ruinous  a 
catastrophe.  One  of  the  various  results  from  this  state  of 
things  was,  the  ditference  of  exchange  between  the  bank 
notes  of  Boston  and  New  York.  The  former  were  ten 
per  cent,  and  even  twenty,  above  the  latter. 

~  While  adversity  with  its  thousand  influences  are  sweep-  Oct. 
ing  through  the  Union,  and  operating  to  bring  suspicion 
upon  our  strong  banks  and  embarrassment  upon  our  weak 
ones,  our  Legislature  are  careful  to  despatch  their  commis- 
sioners for  the  examination  of  such  as  are  likely  to  falter 
and  injure  the  public. 

^So  situated,  the  monied  institutions  are  exceedingly  ^^^^* 

I  on 

loth  to  let  their  bills  even  to  the  Commonwealth.  Over  jg/ 
three  months  had  the  State  Treasurer  been  endeavoring 
to  hire  a  million  of  dollars  from  them  and  had  not  fully 
succeeded.  On  this  point,  Governor  Strong  remarks : — 
"  The  directors  of  some  of  the  banks  declared  themselves 
unable  to  lend,  and  others  have  expressed  such  reluctance 
as  forbids  an  expectation,  that  the  whole  amount  can  be 
obtained  in  that  way  during  the  continuance  of  the  present 
cautious  operations  of  the  banks." 

*  Pitkin's    Statistics.        Gallatin's  -  Resolves  of  Massachusetts, 

consideration  on  the  currency  of  the  ^  Resolves  of  Massachusetts, 

United  States.  -^^ 


220  HISTORICAL  ACCOUNT  OF 

1815..     ^Public  as  well  as   private   credit  being    shaken   and 
^'^p^  impaired — a  sure   symptom  of  disorder  in  the  medium  of 
14.    exchange — the  news  of  peace  cheers  the  desponding  and 
encourages  them  to  look  for  a  more  prosperous  day.     This 
blessing,   however,  was  not  succeeded  immediately  with 
the  good  effects  expected.     It  was  accompanied  with  so 
great  and  sudden  a  fall  in  the  price  of  various  species  of 
property,  that  large  numbers  of  men,  who  had  purchased 
them  at  high  war  prices,  suffer  greatly,   and  others  are 
ruined.     Such  a  revulsion  affects  the  currency,  and  con- 
tracts the  supplies  of  paper  money. 
June       2^g  Qj^g  description   of  the   circulating   medium,   the 
obligations,  issued  by  the   State  for  expenses  of  the  late 
war,  are  made  payable  to  the  assignees  or  bearers  of  them. 

1816.      3  j^gfQj.^.|j^g.  ^Q  jjjg  great  reluctance  of  the  banks,  in  the 
Feb.  . 

16,"  recent  conflict  with  England,  to  lend  their  notes  to  the 

Commonwealth,  an  act  is  passed,  that  they  shall  be  com- 
pelled,  if   necessary,   to  comply  with  such  applications. 
This  evidently  savors  of  the  absolute  terms — '  willing  or 
unwilling.' 
April       '^  Much  to  the  satisfaction  of  many  in  public  and  private 

20 
*    life,    another   National    Bank  is  chartered.     The  reasons 

for  this  were  various.  Contrary  to  expectation,  widely 
entertained,  when  the  first  was  terminated,  that  the  finan- 
cial concerns  of  the  country  might  be  conveniently  con- 
ducted without  it,  by  means  of  State  banks,  there  was  a 
sad  disappointment.  It  was  soon  perceived,  that  the 
monied  machinery  of  the  whole  land,  which  had  been 
kept  in  order  by  the  checks  and  balances  of  the  chief 
Regulator,  was  alarmingly  disarranged,  and  worked  to 
great  disadvantage,  because  that  was  removed.  This  fact 
and  the  adverse  results  of  war,  not  only  rendered  many 
banks  miable  to  pay  their  paper  in  gold  and  silver,  but 
also  seriously  depreciated  the  millions  in  notes  issued  from 
the  treasury  of  the  United  States.  To  remedy  such  evils, 
to  restore  the  by-gone  tone  and  vigor  of  the  currency,  with 
its  relative  benefits  to  agriculture,  manufactures,  trade  and 

1  Resolves  of  Massachusetts.  *  Laws  of  the  United  States.    Pit- 

2  Laws  of  Massachusetts.  kin's  Statistics. 
■3  Laws  of  Massachusetts. 


Dec. 
11. 


MASSACHUSETTS  CURRENCY.  221 

commerce,  public  sentiment  spoke  in  the  halls  of  Congress  i8l6. 
and  decided,  that  from   the  sleeping  ashes  of  the  first,      ■ 
there  should  arise  a  second  National  Bank.     In  the  antici- 
pation of  such  advantages,  which  became  fully  realized, 
our  Commonwealth  largely  participated. 

^  The  present  period  was  one  of  great  trial  to  the  Banks 
of  Massachusetts.  Our  civil  authorities  were  vigilant  and 
active  to  have  them  tested,  so  that  community  might  not 
be  sufferers.  A  considerable  number  of  them  had  their 
capitals  reduced,  and  others  stopped,  except  for  settling  up 
their  accounts.  While  the  weak  fell,  the  strong  stood  and 
commanded  confidence. 

2  Of  the  notes,  which  serve  as  a  medium  of  exchange, 
are  some  given  by  the  State,  for  what  they  borrowed  in 
the  last  war.  A  series  of  them,  soon  to  be  emitted,  had 
the  ensuing  form. 

LOAN    FOR    DEFENCE. 

Commonwealth  of  Massachusetts. 

No.  isir. 

Be  it  knotvn,  that  there  is  due  from  the  Commonwealth 
of  Massachusetts,  unto  or  hearer,  the 

sum  of  dollars,  hearing  interest  at  the 

rate  of  six  per  centum  per  annum,  from  the  first  day  of 
October,  one  thousaiid  eight  hundred  and  sixteen  inclu- 
sively, payable  half  yearly,  and  subject  to  I'edemption  in 
icliole  or  in  part,  at  the  pleasure  of  the  Coinmonwealth. 

Secretary. 

Treasurer. 

Though  debt  in  any  form  is  far  from  being  agreeable, 
either  to  an  individual  or  the  public ;  still,  under  the 
circumstances  of  the  State,  at  this  date,  their  many 
resources  and  their  hopeful  prospect,  it  was  scarcely  noth- 
ing to  what  it  was,  when  emerging  from  the  storms, 
wrecks  and  desolations  of  the  Revolutionary  contest. 
A  retrospect  of  her  burden,  then  pressing  upon  all  her 
energies  with  a  mountain  weight,  is  enough  to  produce  a 

*  Laws  of  Massachusetts.  ^  Laws  of  Massachusetts. 


222  HISTORICAL  ACCOUNT  OF 

1816.  painful  shudder,  though  reheved  by  the  thought,  that  she 
"^"^^  was  kept  from  being  crushed,  was  enabled  to  throw  off 
her   incumbrances,  to    develope   her  native   powers,  and 
enter  on   a   career,    not   unworthy  of   the   fathers,  who 
"nourished  and  brought  her  up." 
Dec.       ^  With   regard   to   our   banking   institutions,  a  law   is 
1"^-    passed,  that  they  shall  have  their  notes  and  other  respon- 
sibilities payable  at   their  own  counter  in  hard  money. 
The  occasion  of   this  statute  was,   that   Dedham    Bank 
issued,  August  20,  1816,  a  large  quantity  of  bills,  checks 
or  draughts,   payable   to  the  bearer,   and  drawn  on  the 
Cashier  of  the  bank  at  Middletown  in  Connecticut.     Such 
a  mode  of  doing  business  was  made  a  source  of  profitable 
speculation  to  its  authors.     It  was  properly  forbidden  by 
the   liCgislature,   as  inadmissible,    and   hazardous   to  the 
public. 
1818.      ^-^^   fractional    bills,    less   than  a  dollar,   had   become 

Feb.   abundant,  and  driven  most  of  the  silver  change  from  the 
3 

market,   Government    interpose,   and    prohibit  the  banks 

from  passing  them. 

1819  ^^^^  remarking  on  the  need  of  making  pecuniary  asso- 
Jan.  ciations  as  secure  for  community  as  possible.  Governor 
Brooks  passes  a  deserved  eulogium  on  the  most  of  them 
in  our  Commonwealth.  His  words  are,  "  I  feel  a  sincere 
satisfaction  in  expressing  what  I  deem  to  be  due  to  the 
banking  establishments  of  this  metropolis,  and  of  Massa- 
chusetts generally,  the  high  sense  I  entertain  of  the  correct 
and  honorable  manner  in  which  their  concerns,  in  times 
of  peril  and  extreme  pressure,  have  been  administered." 
Ardent  is  the  wish  of  thousands,  that  this  praise  of  our 
chief  city  might  have  continued  altogether  unsullied.  But 
reckless  speculation  has  cast  some  shadows  upon  it,  which 
to  the  eye  of  truth,  will  long  remain. 

March      "*  I^  relation  to  the  gold  coins  of  Great  Britain,  France, 

3-     Spain,   and  Portugal,   which  cost   so  many  collisions  of 

mind  and  argument   to  be   acknowledged  as  legal  tender 

for   debts   in   Massachusetts    long   before,  they  are  now 

^  Laws  of  Massachusetts.  •*  Governor  Brooks's  Speech. 

-  Laws  of  Massachusetts.  ^  Laws  of  the  United  States. 


MASSACHUSETTS  CURRENCY. 


223 


prohibited  by  Congress  to  be  such  after  the  first  dayofigig^ 
November.  Cliange  in  national  circumstances,  promotes  ^^ — • — - 
change  in  national  pohcy. 

^  With  reference  to  the  occasion  of  the  currency's  being  1820. 
interrupted  in  its  free  and  full  course,  we  have  the  ensuing  "^f"' 
remark  of  Governor  Brooks.  "If,  in  some  of  the  great 
departments  of  active  and  lucrative  pursuit,  especially 
navigation  and  commerce,  many  of  our  fellow  citizens  are 
suifering  depression  and  embarrassment,  our  regret  is  tem- 
pered by  the  reflection,  that  those  evils  are  partial,  and 
constitute  a  part  of  the  price  of  the  general  peace  of  the 
world."  He  adds,  that  the  distress,  experienced  through 
the  country,  can  be  traced,  in  a  great  degree,  to  the  pro- 
fusion of  paper  money  in  most  sections  of  the  Union,  and 
the  ease,  with  which  loans  of  it  had  been  obtained  by 
rash  speculators.  While  banks  elsewhere  had  issued  their 
notes  to  an  indefinite  amount,  without  the  means  of 
redeeming  them  in  specie,  tlipse  of  this  Commonwealth 
had  pursued  a  different  course,  and  thus  preserved  their 
credit  and  their  stock.  Specie,  which,  the  last  year,  was  18. 
from  3f  to  4,  and  in  1817,  2  to  2^  above  the  best  of  bank 
notes,  is  now  fallen  to  about  1  advance. 

2  In  reply  to  a  proposition  from  Pennsylvania,  for  so  31. 
altering  the  Constitution  of  the  United  States,  as  to  limit 
the  operations  of  the  National  Bank  to  the  District  of 
Columbia,  our  Legislature  decide,  that,  believing  the  bank 
to  have  a  beneficial  iufiuence  on  the  monied  interests  of 
the  country,  they  cannot  agree  to  any  such  change. 

^  Maine,  being  now  admitted  as  an  independent  State,  March 
withdraws  fifteen  banks,  with  a  capital  of  f  1,770,000,  *^* 
from  the  supervision  of  our  Commonwealth.  With  this 
subtraction  from  the  immediate  funds  of  our  currency, 
Massachusetts  has,  besides  the  branch  of  the  United 
States  Bank,  twenty-eight  banks  left,  the  capital  of  which 
is  eleven  millions  and  a  half  of  dollars. 

^The  gold  coins  of  Great  Britain,  Prance,  Spain,  and  1823. 
Portugal,  which  had  ceased  to  be  a  legal  tender  for  debts,  ^^"-5*^ 

'  Governor  Brooks's  Speech.  ^  Laws    of  the    United    States — 

'^  Resolves  of  Massachusetts.  Massachusetts  Register. 

^  Laws  of  the  United  States. 


224  HISTORICAL  ACCOUNT  OF 

1823.  are  allowed  by  Congress  to  be  received  for  the  national 
^"^^  lands.     Such  a  restoration  of  these  pieces,  however,  was 

far  from  allowing  their  former  rank,  and  only  brought 
them  nearer  to  the  peril  of  being  changed  in  their  royal 
bearings  for  the  impressions  of  our  oAvn  mint,  the  emblems 
of  our  freedom. 

1824.  ^Having  witnessed  that  the  notes  of  Banks,  struck  from 
Feb.  Perkins's  stereotype  plates,  were  seldom  successfully  im- 
itated, the  Legislature  again  recommend  them  to  be  used 
by  all  such  corporations  in  their  jurisdiction.  Thus  the 
invention  of  genius  occasionally  keeps  men  from  the  open 
commission  of  crime,  whose  hearts  are  steeled  against  the 
appeals  of  moral  suasion. 

1825.  The  prices  of  the  best  Bank  stock  in  Boston  having 
^l^^  ranged  as  high  as  6  above  par  in  1817,  10  in  1818,  19 

and  20,  12  in  1821,  9  in  1822,  6  in  1823,  12  in  1824, 
reaches  to  20  at  the  present  date. 

Taking  the  number  of  Banks  annually  granted,  as  the 
apparent  test  of  currency's  having  been  shortly  before  or 
at  the  time,  more  or  less  prosperous,  the  year  of  1825  was 
unprecedented  in  this  State.  Then  a  far  greater  number 
of  such  companies,  (being  no  less  than  fifteen,)  was 
allowed  by  the  General  Court,  than  ever  before  in  the 
same  period.  But  the  monetary  system,  like  the  human 
system,  when  most  healthful  and  extending  its  energies, 
and  making  hazardous  experiments  of  its  strength,  is  in 
peril  of  being  weakened  and  retarded  in  its  operations. 
So  it  soon  proved.  For  in  the  two  succeeding  years, 
scarcely  half  of  the  Banks  were  chartered,  which  were 
in  this. 

Prior  to  1825  these  institutions  were  promoted  and 
sustained  chiefly  by  capitalists.  But  since,  they  have  been 
much  oftener  made  up  for  the  purpose  of  borrowing  and 
not  of  lending,  for  rash  enterprises  to  gain  fortunes  at  the 
risk  of  the  community.  Though,  as  Seneca  remarks, 
"success  gives  to  vice  the  aspect  of  virtue,"  yet,  in  the 
case  before  us,  adversity  is  sure  to  unfold  a  tale  of 
iniquitous  motive  and  action. 

'  Resolves  of  Massachusetts. 


MASSACP£USETTS  CURREx\CY. 


225 


^  To  quicken  the  memory  and  bring  devious  practice  to  jgofj 
the  line  of  law,  estabUshed  over  a  century,  and  requirins;  rr^ 

.  '  ^ '  in  March 

that  only  six  per  cent,  interest  shall  be  taken,  this  enact-     4. 
ment  is  renewedly  conhrmcd. 

The  latter  part  of  1S2G  and  the  former  part  of  1827,  is 
a  season  of  trial  and  depression  in  the  pecuniary  world. 
As  one  result,  only  two  Banks  ~  were  incorporated  during 
the  year  last  mentioned. 

Combining  experience  of  the  past  with  conviction  of 
the  present,  relative  to  monied  associations,  the  General 
Court  form  a  compend  of  Laws  "  to  regulate  Banks  and 
Banking." 

Subsequent  to  a  short  repose,  in  1828,  from  the  anxie-  jgog 

ties  and  difficulties  of  a  pressure  for  cash,  when  a  lar2:e    «nd 

1830 
amount  was  added  to  the  Banking  capital,  community  are 

again  called  to  grapple  with  similar  evils.     So  imposing 

were  such  embarrassments,  it  was  feared  that  they  would 

hinder   the   internal    improvement  of  rail   roads,  then  a 

subject  of  increasing  interest  with  the  public. 

^  In  remarking  on  trials  of  this  sort,  the  Chief  Magistrate    Jan. 
judiciously  observed  to  the  Legislature,  that  for  them  to      ^' 
be  overcome,  one  great  means  was  to  encourage  the  project 
of  travelling  by  the  application  of  steam. 

^As  several  of  the  country  Banks  had  been  recently  j^^g 
suspended,  because  unable  to  meet  their  liabilities,  as  7. 
presented,  Commissioners  for  each  county  Avherein  similar 
corporations  existed,  are  empowered  to  examine  them  and 
report  such  as  are  unsafe  for  the  public.  Care  of  this  sort 
was  but  too  true  a  sign,  that  the  transactions  of  a  few 
such  institutions  had  brought  suspicion  upon  the  rest. 
Evil  occasions  the  very  guard  which  is  set  to  prevent  its 
repetition.  Still,  monied  associations,  well  regulated,  like 
an  honest  individual,  invite  rigid  scrutiny,  rather  than 
keep  it  at  bay. 

As  an  indication  that  calamity  was  written  on  the  face  1 8  3  L 
of  the  pecuniary  world   from   1828   to   1831,  only  one 

'Laws  of  Massachusetts.  charters    were    granted.     He   must 

''A  writer  in  the  Boston  Centinel  have  mistaken  this  year  for  1825. 

and    Gazette    of    March    21,   1838,  ^  Gov.  Lincoln's  Speech. 

relates   that,  in    1827,   many   Bank  *  Resolves  of  Massachusetts. 

29 


22G  HISTORICAL  ACCOUNT  OF 

1831.  Bank,  and  this  the  Cohannet  of  Taunton,  with  a  capital 

of  $100,000,  is  chartered.     Had  not  the  people  of  our 

Common weahh,  as  well  as  those  of  others  in  the  nation, 
acquired  the  habit  of  multiplying  such  corporations  when- 
ever the  burdens  of  adversity  are  removed,  and  oftentimes 
when  not  demanded  by  the  wants  of  community,  such  a 
sign  would  have  been  one  of  caution  and  of  good. 
Jan.        ^  Regarding  the  influence  of  Banks  on  society,  as  of  nc 
^'     ordinary  character  and  degree.  Governor  Lincoln  expresses 
his  views  in  the  succeeding  terms: — "It  would  doubtless 
have  been  better,  that  the  system  had  been  more  cautiously 
introduced  and  less  liberally  extended.     Banks  have  been 
multiplied  here  and  elsewhere,  greatly  beyond  the  occa- 
sions of  the  country.     The  injurious  effects  have  been 
seen  in  excessive  issues  of  paper  and  in  vexatious  and 
profitless   competitions  to  give  to  it  circulation;  in  rash 
enterprises  of  individuals,    induced    by   the   facilities   to 
credit ;  in  unwarrantable  expenses  of  living ;  in  the  em- 
barrassments of  debt,  and  in  the  sacrifice  of  estate,  not 
unfrequently  attended  with  the  loss  of  character,"    These 
remarks  fully  accorded  with  the  experience  of  the  day 
when  they  were  uttered,  and,  relatively,  with  the  history 
of  paper  currency,  as  emitted  for  a  long  period,  with  some 
interruption,  by  Massachusetts  both  as  a  Province  and  a 
State.     His  Excellency  further  suggests  to  the   Legisla- 
ture, whether  it  would  not  be  a  good  rule  to  allow  no 
charter  to  a  Bank,  or  an  extension  of  it,  when  granted, 
except   in   cases   of    competent   funds  and   of   sufficient 
business  to  employ  them.     He  also  refers  to  a  proposition, 
made  at  several  different  times,  for  the  Commonwealth  to 
own   and   manage   a  Bank  with    several   branches.     He 
estimates  the  objections  to  such  an  institution  as  greater 
than  the  arguments  in  its  favor.     It  was  no  more  nor  less 
than  a  new  edition  of  the  old  loaning   system,  by  which 
our  fathers,  while  Provincials,  lost  and  suffered  much. 

Notwithstanding  the  suggestions  of  sound  discretion  and 
wise  policy,  just  stated,  the  General  Court,  in  the  same 
year  they  were  presented  to  their  attention,  chartered  no 

'  Gov.  Lincoln's  Speech. 


MASSACHUSETTS  CURRENCY.  227 

less  than  twelve  Banks,  a  number  exceeding  that  of  any  1 831. 
previous  years,  except  1825  and   1828.     The  clouds  had  -^^'"^ 
blown  away  and  the  sun  appeared  ;  and,  without  calculat- 
ing to  be  prepared  for  the  return  of  the  former,  they  freely 
give  leave  for  such  associations. 

^  While  the  large  proportion  of  convicts  in  the  State  1833. 
Prison  for  counterfeiting  our  paper  money,  showed  that  os 
■.they  had  not  been  idle  in  such  labor,  it  is  discovered, 
that  a  similar  work  is  carried  on  here,  in  relation  to  bills 
of  the  British  Provinces.  This  detection  is  laid  before 
our  Legislature,  and  they  pass  an  Act  for  its  prohibition. 
It  was  one  of  the  bitter  fruits,  produced  by  such  perverted 
geniuses,  as  that  of  the  notorious  Burroughs. 

As  private  banking,  by  the  emission  of  notes,  again 
manifests  its  penchant  for  following  in  the  wake  of  monied 
corporations,  the  General  Court  interfere  and  restrain  such 
a  bias  by  the  strong  arm  of  law. 

For  the  three  last  years,  up  to  this  date,  a  considerable 
number  of  banks  had  been  allowed.  Such  liberty  is  to 
be  followed  with  sober  abstinence  from  it,  for  two  Legis- 
lative years. 

^Reverting  to  the  prevalent  anxiety  which  is  mani-1834. 
fested  in  relation  to  the  probability,  that  the  charter  of  the  <^°* 
United  States  Bank,  when  expired,  will  not  be  renewed, 
Governor  Davis  makes  the  ensuing  comment  on  this  insti- 
tution : — "■  Its  existence  has  imposed  a  restraint  upon  the 
immoderate  issues  of  paper  by  other  banks,  and  tended 
strongly  to  keep  that  paper  up  to  the  metallic  standard  of 
value."  Subsequent  and  sad  events  have  confirmed  the 
correctness  of  this  position.  The  Chief  Magistrate  goes 
into  a  particular  examination  of  our  own  banks.  He 
renews  the  tale,  to  which  many,  in  an  embarrassed  situa- 
tion, could  experimentally  respond,  that  frequent,  though 
prudent  curtailments  by  the  banks  in  their  discounts,  had 
as  often  been  succeeded  by  distress  in  the  monied  world. 
His  words  proceed: — "This  calamity  has  so  frequently 
visited  us  within  a  few  years  past,  under  the  name  of  a 

'  Laws  of  Massachusetts.  ^  Governor  Davis's  Speech. 


21. 


228  HISTORICAL  ACCOUNT  OF 

1834.  pressure  for  money,  and  with   such  disaster  to  debtors, 
""^      that  the   subject  demands  investigation,  with  a  view  to 
avert  its  future  recurrence."     He  mentions  various  opin- 
ions as  to  the  causes  of  these  effects.     He  assumes  one 
position,  which  was  undoubtedly  correct,  that  there  is  too 
httle  specie  in  the  banks  at  large,  to  meet  their  liabilities. 
He  states,  that,  however  such  institutions  stand  no  Avhere 
better  than  in  Massachusetts,   yet  even  here,  "  if  a  panic 
should  seize  the  public,  if  distrust  should  overshadow  our 
banks  but  a  day,  all  payments  in  specie  would  cease,  for 
the  funds  on  hand  do  not  amount  to  one  tioelfth  of  the 
bills  in  circulation,   and  those  deposits    Avhich  they  are 
bound  to  pay  on  demand."     He  further  relates,  that  the 
average  amount  of  bills  circulating  in  1832,  was  as  eight 
to  one  of  specie  for  their  redemption,  and  in  1833,  as  eight 
and  a  half  for  one.     Hence,  he  derives  the  argument,  that 
it  is  of  exceeding  importance  for  such  a  disproportion  to  be 
diminished  by  the   increase  of  hard   money,  in  order  to 
save  the  "active  industry"  of  the  public  from  the  "de- 
vouring vortex  of  an  almost    periodical   disaster."      He 
proposes,  that,  if  there  should  be  a  rush  for  bank  charters, 
on  the  cessation  of  the  National  Bank,  as  there  was  for- 
merly, it  should  be  breasted  with  fii-m  and  cautious  care, 
so  that  the  pecuniary  interests  of  community  may  not  be 
further  imperiled. 
March       ^  As  an  introduction  to  resolves,   which  maintain  that 
^'     the  resistance  of  the  General  Administration  to  the  Bank 
of  the   United   States,   and  the   removal  of  the  national 
deposits  from  its  vaults,  have  been  the  prolific  origin  of 
disarrangement  in  the  system  of  currency,  and  of  calamity 
to  the  whole  country,  our  Legislature  utter  the  following 
sentiments: — "In  the   midst  of  a  season  of  general  pros- 
perity, the  community  has  been  suddenly  visited  by  a 
distressing  and  financial  crisis,  which  has  created  great 
embarrassment  in  all  branches  of  business,  and  occasioned 
many  bankruptcies."     However  divers  opinions  and  con- 
flicting arguments  have  existed,  as  to  these  measures  of 
Congress,   yet  all   are  constrained  to  allow,  that  such  a 

'  Resolves  of  Massachusetts. 


MASSACHUSETTS  CURRENCY.  229 

dark  view  of  our  Republic's  condition  is  not  too  deeply  1830. 
shaded.  ""^    '"^ 

^  In  connection  with  the  supposition,  that  large  emis-  ^^'^^^'^ 
sions  of  the  National  bank  would  be  recalled,  because  its  to 
charter  was  soon  to  cease,  and  leave  a  vacuum,  which  -yjl 
might  be  profitably  supplied  by  State  corporations,  a  flood 
of  corresponding  petitions  flows  into  our  halls  of  legisla- 
tion. True,  it  did  not  literally  carry  before  it  every  door 
post,  and  every  pillar,  and  thus  cause  a  devastation  like 
that  of  Samson's  might.  Still,  it  levelled  every  barrier 
presented  by  the  counsels  of  wisdom,  and  the  bitter 
teachings  of  the  past.  More  than  as  many  again  banks 
are  incorporated  this  Spring,  than  ever  before  under  our 
constitutions  of  freedom.  They  numbered  no  less  than 
thirty-two.  In  addition,  the  stocks  of  not  a  few  banks, 
previously  permitted,  were  much  enlarged.  If  on  the 
restoration  of  community  from  every  monied  paralysis,  its 
appetite  is  thus  profusely  catered  for,  the  forecast  of  a 
prophet  is  not  required  to  perceive,  that  the  credit  of  a 
large  proportion  of  its  bills  will  be  irrecoverably  lost,  and 
the  inscription,  published  in  the  notifications  of  exchange 
must  be,  that  they  are  of  little  or  "nothing  worth." 

^The  repeal  of  the  Charter  of  the  National  Bank,  having    June 

15 

been  anticipated  as  sure  for  many  months,  and  on  which 

numerous  minds  had  dwelt  with  dark  forebodings,  now 
legally  takes  place.  In  the  prospective  effects  of  this 
enactment,  whether  construed  as  for  weal  or  wo,  our  own 
Commonwealth  has  had  its  abundant  portion. 

As  a  means  of  rendering  hard  money  less  scarce  in  cir-    23. 
culation,  the  General  Administration  order,  that  no  bank 
shall  have  any  deposits  of   the   national    funds,    which 
emits  notes  less  than  five  dollars. 

Specie,  which  was  2  to  2J  advance  in   1825,   If  in  Aug. 

1831,  2  to  3  in  1833  and  '35,  is  now  2^  to  3  per  cent.     31. 

The  best  of  Boston  bank  stocks,  which  were  at  8  per  cent. 

advance  in  1826  and  '27,  3  in  1829,  8  in  1831  and  '33,  10 

in  1835,  are  now  7. 

While  all  the  silver  coins  from  the  mint  are  still  to  be  1837. 

Jan. 

18 
'  Laws  of  Massachusetts.  '  Laws  of  the  United  States. 


230  HISTORICAL   ACCOUNT   OF 

1837.  accounted  a  lawful  consideration  for  debts,  Congress  re- 

"^''^^  quire  that  none  of  the  gold  coins,  except  those  issued  since 
the  31st  of  July,  1834,  shall  be  so  estimated. 

March  ^  Acts  having  been  passed  the  16th  of  April,  1836,  for 
^^'  nullifying  the  charters  of  the  State  Bank  of  Boston,  and 
the  People's  Bank  of  Roxbury,  they  are  now  repealed. 
The  ground  for  this  reversion  of  Legislative  opinion  and 
decision,  was,  that  the  charge  against  these  companies  for 
taking  above  six  per  cent,  interest,  was  no  more  peculiar 
to  them,  than  to  many  other  similar  associations,  nor  more 
than  they  supposed  their  privilege  allowed. 

April  2  Owing  to  the  embarrassed  situation  of  some  banks 
^^'  with  regard  to  their  want  of  sufficient  means  to  pay  any 
further  responsibilities  on  demand,  they  had  issued  notes 
redeemable  at  certain  periods.  As  an  implicit  license  of 
this  kind,  would  be  only  preparing  the  way  for  greater 
difficulties  and  perils  in  paper  currency,  the  General  Court 
pronounce  such  a  practice  altogether  illegal.  A  resort  of 
this  kind  was  but  one  of  the  various  attendants  on  the 
great  disorder  of  our  currency,  and  the  exceeding  distress 
experienced  in  several  branches  of  trade. 

May  Unable,  in  the  trying  circumstances,  which  filled  the 
^^*  whole  country,  to  discharge  their  notes  and  liabilities  with 
specie,  the  banks  in  the  city  of  New  York  suspend  this  sort 
of  payment.  Tidings  of  such  an  event  reached  our  metrop- 
olis the  next  day.  They  spread  consternation  far  and  wide. 
Self-preservation  immediately  drew  together  a  large  assem- 
bly of  gentlemen  in  Boston,  concerned  in  our  pecuniary 
institutions.  They  resolve,  that  there  is  no  other  alterna- 
tive, except  either  to  have  all  the  specie  drawn  from  their 
banks,  the  paper  money  transactions  stopped,  and  the  ruin 
of  mercantile  interests  greatly  magnified,  or  to  imitate  the 
example  of  New  York.  The  last  of  these  two  deprecated 
choices  is  recommended  by  them,  until  there  be  a  recovery 
12.  from  the  tremendous  shock.  Accordingly,  the  subsequent 
morning  the  banks  of  Boston  give  notice,  that  they  shall 
comply  with  such  advice.  As  the  news  of  this  measure 
reached  the  towns,  wherein  similar  companies  existed,  these 

'  Laws  of  Massachusetts.  2  Laws  of  Massachusetts. 


MASSACHUSETTS  CURRENCY.  231 

felt  constrained  to  take  the  like  step.     Thus  in  a  few  days  1837. 
one  of  the  most  dreaded  and  dangerous  changes,   ever  ^-^^"^^ 
wrought   in  the  paper  medium   of  our  Connnonweallh, 
takes  })lace. 

While  the  banks  were  collecting  their  loans  to  meet  the 
apprehended  revolution,  and,  also,  subsequent  to  its  occur- 
rence, constant  failures,  both  great  and  small,  ensued.  A 
daily  and  fruitful  topic  was  in  relation  to  the  number, 
persons,  and  responsibilities  of  those,  who  were  no  longer 
able  to  buffet  the  storm  of  adversity.  Comparatively  few 
could  take  their  stand  on  the  eminence  of  security  and 
truly  say,  "  I  scorn  to  change  or  fear." 

Among  the  developments  made  by  the  searchings  of 
this  catastrophe,  was  one,  which  excited  less  sympathy, 
than  it  caused  pain  to  the  philanthropist  and  Christian. 
This  was  the  astounding  fact,  that  men,  intrusted  with 
millions  belonging  to  the  widow  and  orphan,  to  depend- 
ents upon  small  investments  and  charitable  institutions, 
as  well  as  to  the  more  wealthy,  had  been  playing  a  despe- 
rate game  of  speculation  with  these  funds,  on  the  bare 
possibility,  that  they  might  fill  their  coffers  with  gain, 
but,  at  the  same  time,  with  the  almost  certainty,  that  each 
unsuspecting  stockholder  would  have  to  bear  a  propor- 
tionate loss  of  their  recklessness,  folly  and  ini(piity. 
While  we  would  not  visit  too  severely  so  crying  an  abuse 
of  sacred  trust,  we  do  hope,  that  pertinent  vigilance,  as 
well  as  genuine  principle,  will  prevent  any  more  such 
works  of  darkness  and  depravity.  From  this  black 
picture  of  obliquity,  we  are  privileged  to  turn  and  behold 
an  alleviating  contrast.  Though  temptation  laid  its  en- 
snaring baits,  and  presented  its  sophistries  of  avarice,  still, 
the  greater  portion  of  those  guardians,  who  watched  over 
our  pecuniary  institutions,  were  enabled  to  resist,  and 
hold  fast  their  integrity.  Verily,  they  deserve  to  be  had 
in  grateful  and  honorable  remembrance. 

^Embarrassment  having   come  upon   the  national  ex-    Oct. 
chequer,   as  well  as  upon  the  banks,   Congress  order  an     ^^• 
emission  of  notes,  not  to  exceed  ten  millions  of  dollars. 

*  Laws  of  the  United  States. 


232  HISTORICAL  ACCOUNT  OF 

1837.  The  maximum  interest  of  them  is  six  per  cent.,  and  they 
"^    "^^  are  to  be  redeemed  in  a  year  from  their  date.     Thus  an 

addition  is  made,  in  one  kind,  to  the  paper  medium.  But 
such  enlargement,  lil^e  tlie  fulhiess  produced  by  disease, 
has  always  been  more  the  sign  of  wealcness  than  of 
strength,  more  the  cause  of  regret  than  of  joy. 

1838.  From  the  eloquent  memorial  of  the  associated  banks  of 
Jan.    Boston,  we  have  the  ensuing  quotation.     It  refers  to  their 

suspension  of  specie  payment,  a  resort  as  contrary  to  their 
wishes  and  profit  as  to  those  of  the  public.  "  As  the  least 
evil,  and  as  a  protection  to  the  general  interests,  it  was 
determined  to  yield  temporarily  to  the  force  of  circum- 
stances which  could  not  be  controlled,  in  order  to  allow 
the  community  to  gather  up  their  resources,  to  afford  time 
for  the  restoration  of  confidence,  to  succor  those  who  were 
on  the  eve  of  prostration,  and  to  relieve  those  who  merely 
needed  palliatives  to  ensure  their  recovery."  On  another 
subject  of  highly  commendable  precaution,  they  say, 
"At  the  time  when  specie  payments  were  suspended,  all 
the  banks  in  Boston,  with  one  exception,  entered  into  an 
association,  for  the  avowed  purpose  of  protecting  the 
interests  of  the  public." 
9,  ^The  Chief  Magistrate,  in  remarking  on  the  monied 
concerns  of  the  State,  represents  them  as  being  a  gloomy 
contrast  to  those  of  the  previous  year.  Respecting  the 
suspension  of  specie  payments  by  our  banks,  he  observes, 
that,  as  the  only  means  of  preventing  a  general  insolvency, 
it  was  not  merely  a  measure  of  public  convenience,  but, 
also,  of  pressing  necessity.  He  notices  the  fact,  that  these 
corporations,  by  such  a  course,  had,  if  the  law  were 
literally  interpreted,  and  no  allowance  made  for  their  par- 
ticular relations  to  the  business  community,  forfeited  their 
charters.  But  he  concluded,  from  the  nature  of  the  case, 
that  no  forfeiture  of  this  kind  would  be  exacted. 
Feb.  "As  a  more  efficient  method  to  check  the  abuses  of 
^^'  Banking,  recently  and  extensively  brought  to  light,  the 
General  Court  order,  that  a  permanent  Board  of  Commis- 
sioners be  appointed  to  supervise  this  important  branch  of 
social  interests. 

*  Governor  Everett's  Speech.  ^Laws  of  Massachusetts. 


MASSACHUSETTS  CURRENCY.  233 

^The    Sub-Treasury    scheme,    deeply    agitating    the  i838. 
country,  and  still  before  Congress,  is  objected  to  by  the  Jjj^^ 
resolves  of  a  majority  in  our  Legislature,  as  unfavorable  to     10. 
a  sound  currency  between  the   States,  and  uselessly  with- 
drawing from  circulation  a  large  amount  of  specie. 

~  Unable  to  pursue  their  accustomed  course  of  business  April 
with  safety  to  the  public,  no  less  than  ten  Banks  had 
their  chai-ters  repealed  during  this  session  of  the  Leg- 
islature. Seven  of  them  belonged  to  the  metropolis. 
Mismanagement  as  well  as  adversity  produced  so  sad  a 
termination. 

With  reference  to  the  many  Banks,  which  had  escaped 
so  deprecated  a  wreck,  but  which  still  saw  no  favorable 
opportunity  to  resume  the  meeting  of  their  liabihties  in 
hard  money,  an  Act  is  passed,  allowing  them  so  to  remain 
till  the  first  of  January,  if  those  of  Boston  pay  their  notes 
of  five  dollars  and  under,  and  others  their  threes  and  less, 
with  specie.  This  condition  is  immediately  fulfilled. 
One  result  is,  that  silver  change,  which  had  been  very 
scai-ce  and  at  a  high  premium,  is  conveniently  restored  to 
circulation. 

During  the  fore  part  of  the  suspension,  the  discount  on 
good  bank  notes  of  Boston,  was  10  per  cent. ;  and,  when 
the  news  came  from  Washington,  that  custom  house 
duties  must  be  discharged  with  hard  money,  it  rose  to  13  ^^ 
and  so  continued  a  few  days.  After  this,  it  gradually  fell 
about  one  per  cent,  a  month  till  a  year  since,  when  bills 
of  our  regular  Banks  were  on  a  par  with  hard  money. 

To  the  many,  who  regarded  the  Sub-Treasury  system  as  j^^g 
misuited  to  promote  the  pecuniary  welfare  of  the  country,     28. 
the  news  of  its  being  laid  aside  by  a  majority  of  Congress, 
comes  as  a  message  long  wished,  and  very  welcome. 

3 That  we  may  have  "a  bird's  eye  view  '•  of  the  Banks 
in  Massachusetts,  for  every  five  years,  from  1803  to  1837 
inclusive,  except  the  last  period,  which  is  for  four ;  and, 
also,  at  two  dates  of  the  consecutive  year,  the  subsequent    Oct 
compend  is  presented. 

1  Resolves  of  Massachusetts.  ^  Reports  of  John  P.  Bigelow,  Esq. 

2  Laws  of  Massachusetts.  Secretary  of  State. 

30 


234 


HISTORICAL  ACCOUNT  OF 


1838 


1803.     June.             Two  Banks  in  Boston.  Five  elseivhere,     .    7 

Capital,     ....       $1,600,000  $625,262     $2,225,262 

Bills  in  circulation,    .        714,840  850,349       1,565,189 

Specie, 561,669  518,259       1,079,928 

1808.     January.                       Three.  Thirteen,  ...     16 

Capita],     ....       $3,800,000  $2,160,000     $5,960,000 

Bills  in  circulation,   .        259,878  778,164       1,038,042 

» Bills  of  1,  2  and  3  dolls.,  13,472  47,755            61,227 

Specie, 632,137,16  383,706,79  1,015,843^5 

1813.    June.                            Four.  Twelve,    ...     16 

Capital,     ....       $7,000,000  $1,895,000     $8,895,000 

Bills  in  circulation,         1,375,380  811,457       2,186,837 

Bills  ofl,2  and  3  dolls.,        4,441  88,175            92,616 

Specie, 4,569,574,59  1,211,223,49  5,780,798,08 

1818.     June.                          Seven.  Twenty,  ...     27 

Capital,    ....       $7,049,425  $2,699,850    $9,749,275 

Bills  in  circulation,        1.142,116  1,538,361       2,680,477 

Bills  ofl,2aud  3  dolls.,      55,716  192,329          248,045 

Specie, 597,087,88  532,510,39  1,129,598,27 

1823.     June.                           Ten.  Twenty-four,  .    .    34 

Capital,     ....       $8,050,000  $3,600,000  $11,650,000 

Bills  in  circulation,         1,-353,892  1,775,094       3,128,986 

Bills  ofl,2  and  3  dolls.,      66,684  275,115          341,799 

Specie, 503,787,04  529,588,43  1,033,375,47 

1828.     May.                           Sixteen.  Forty-five,  ...     61 

Capital,     ....     $12,343,050  $6,994,750  $19,337,800 

Bills  of  5  dolls,  and  up-  )  ,734  549  2,164,944,50  3,899,493,50 

wards,  in  circulation,  )    '       ' 

Bills  under  5,  do.,      .        332,511  652,534          985,045 

2  Bills  or  notes,  do.,  >      2,378,539,56  220,787,28  2,599,326,84 

bearing  interest,     S  >       5         ;       ^       j 

Specie, 654,344,91  490,300,80  1,144,645,71 

1833.     October.                    Twenty-five.  Seventy-seven,  .     .     102 

Capital,     ....     $16,401,250  $11,835,000  $28,236,250 

BUls  in  circulation,        2,823,617  5,065,493,67  7,889,110,67 

Specie,     ....           647,618,14  274,691,70     922,309,84 

1837.  October.                     Thirty-four.  JVinety-five,    .     .     129 
Capital,     ....     $21,:350,000      $16,930,000     $38,280,000 
Bills  in  circulation,        4,-386,414  5,886,704,71  10,273,118,71 
Specie,     ....        1,129,942,29  388,041,73     1,517,984,02 

1838.  February.                Thirty-two.  Xinety-two,  .     .     .     124 
Capital,    ....     $20,700,000  $16,480,000  $37,180,000 
Bills  in  circulation,        3,688,532  5,412,244,75  9,100,776,75 
Specie, 1,256,722,-32  444,688,39  1,701,460,71 

1838.     October.                  Twenty-eight.  Mnety-two,  -     .     120 

Capital,     ....    $18,450,000  $16,180,000  $34,630,000 

Bills  in  circulation,  )      2,889,598  4,761,587,25  7,651,185,25 

of  5  and  above,    ) 

Bills  do.  of  less  than  5,     499,060  1,250,267,50  1,749,327,50 

Specie,     .    .    .    .    .    1,690,169,59  704,454,65  2,.394,624,24 

'  Bills  of  these  denominations  are      first  reported  in  June,  1825,  and  last 
first  reported,  June,  1806.  reported,  May,  1828. 

2  This  kind  of  obligations   were 


MASSACHUSETTS  CURRENCY. 


235 


The  valuable  statistics,  whence  the  preceding  ones  are  1833, 
derived,  furnish  us  witli  data  for  the  ensuing  table.  This  "^^ 
shows  tlie  proportion  which  tlic  notes  of  our  Banks, 
circulating  when  they  were  reported,  have  held  to  specie, 
deposited  therein,  for  the  period  signified  by  the  given 
years.  From  1825  to  1828  inclusive,  obligations,  bearing 
interest,  are  taken  into  the  estimation. 


Year. 


1803,  4,  5  and  G,  about  J  ^  to  1 


1 807, 

1808,  .     .     . 

1809,  10,  11, 
1812,  13,  14, 
1815,     .     . 
181G,     .     . 

1817,  .     . 

1818,  .     .     , 

1819,  20,   . 

1821,  .     .     . 

1822,  23,  .     , 

1824,  .     .     . 

1825,  .     .     . 


o 

equal. 
IJ    to  1 

equal. 
2     to   1 

n  "   " 

2^  "  " 

2"   "  " 
equal. 

3.^  to  1 

2^  "  " 

"1 0 


Year. 

1820,  .  . 

1827,  .  . 

1828,  .  . 

1829,  .  . 

1830,  .  . 

1831,  .  . 

1832,  .  . 

1833,  .  . 

1834,  .  . 

1835,  .  . 
183G,  .  . 

1837,  .  . 

1838,  Feb., 
"  Oct., 


*0 

•s 


I 


about  42   to  1 


4,1 
4 

8 

7i 
6S 
5f 

3x^0  " 


((  (I 

<(  (( 

<(  (C 

((  << 

t«  ii 

((  <c 

<(  <( 

((  <( 

II  it 

<(  <( 

(C 


It  will  be  perceived  from  these  ratios,  that  the  quantity 
of  scrip  has,  in  several  years,  greatly  exceeded  the  hard 
money,  on  which  it  chiefly  depends,  in  the  revulsion  of  a 
panic,  for  immediate  redemption.  In  one  of  his  recent 
Congressional  speeches,  Henry  Clay  remarked — ''  The  pro- 
portions, which  experience  has  ascertained  to  be  entirely 
safe,  are  one  of  specie  to  three  of  paper."  If  this  be  true, 
it  is  matter  of  high  satisfaction  to  discern,  that  our  Banking 
institutions,  in  general,  have  nearly  returned  to  this  safety- 
ratio.  As  additional,  justice  requires,  that  it  should  here 
be  -stated,  that  such  associations  of  the  metropolis  have 
shown,  by  their  two  last  reports,  more  than  a  third  of 
hard  money  for  their  bills  in  circulation.  If  "the  uses  of 
adversity"  continue  long  to  be  so  applied,  they  will 
indeed  prove  a  blessing  to  community. 

In  compliance  with  a  resolve  of  the  General  Court,  all  1839. 
our   Banks,   remaining    in   operation,  fully  resume   their 
specie  payments.     The  suspension  of  them,  was  one  of 


Jan. 


236  HISTORICAL  ACCOUNT  OF 

1839.  those    occasions,    which   test   the    character   of    society. 

^^"""^  There  was  a  strong  conviction  in  the  pubhc  mind,  which 
seemed  to  address  our  pecuniary  institutions  when  neces- 
sarily driven  to  this  resort,  and  say  in  the  language  of 
Cicero,  "  I  can  see  no  danger,  to  which  you  are  personally 
exposed,  separately  and  apart  from  the  destruction  of  us 
all,"  Under  the  prevalence  of  such  a  disposition,  no 
instance  occurred,  during  the  suspension,  wherein  a  re- 
spectable person  demanded  specie  for  Bank  notes  and 
exacted  the  fine  of  24  per  cent,  interest  for  refusal ;  and 
scarcely  an  individual,  however  low  his  reputation,  dared 
confront  the  general  sentiment  and  boldly  demand  "  the 
pound  of  flesh."  Thus  it  was,  that  this  exigence,  how- 
ever painful  and  hazardous  in  some  respects,  afforded 
satisfactory  demonstration  to  the  philanthropist,  that,  amid 
the  desolations  of  fallen  credit,  there  was  moral  force 
enough  in  society  to  stay  the  rude  onsets  of  uncompromis- 
ing selfishness,  and  to  afl'ord  more  than  a  victor's  triumph 
to  the  cause  of  magnanimity  and  benevolence. 

One  consequence  of  such  a  resumption  was,  to  end  the 
practice  of  giving  notes  of  hand  payable  "in  current  bills." 
This  clause  began  to  be  inserted  at  the  commencement 
of  the  suspension.  It  was  like  what  existed,  to  a  great 
extent,  under  the  Provincial  Banking  system. 

During  the  session  of  the  General  Court,  a  deserved 
eulogium  is  passed  on  the  Sufi'olk  Bank,  for  the  manner  in 
which  it  had,  for  about  fifteen  years,  successfully  entered 
on  the  labors  of  the  New  England  Bank,  to  suppress  an 
onerous  discount  on  bills  of  Banks  not  belonging  to  Boston. 
A  work  of  this  kind  evidently  saves  much  for  such  asso- 
ciations, prevents  great  expense  and  perplexity  to  business 
men,  preserves  the  equal  credit  of  all  notes,  emitted  from 
responsible  Banks,  which  ought  always  to  exist  in  the 
Commonwealth  where  they  belong ;  and,  what  is  more, 
keeps  one  of  the  best  safety  valves  on  the  natural  pressure 
for  depreciating  such  paper  of  every  description.  Though 
for  exerting  so  salutary  an  influence  the  Sufiblk  Bank  has 
been  suspected  of  possessing  dangerous  power,  still  this 


MASSACHUSETTS  CURllENCY.  237 

institution  deserves  the  confidence  of  the  community,  as  i839. 
an  agent  of  great  public  benefit.     May  no  undue  jealousy  ^-^^ 
throw  obstructions  in  its  way,  and  thus  bring  the  mercan- 
tile world   back   to   the    burdensome   impositions,  which 
abounded  for  years,  till  the  operations  of  the  New  England 
Bank  in  1813. 

As  expected  from  the  perilous  reverse  which  had  come 
over  our  pecuniary  aflJ'airs,  little  of  the  usual  attention  and 
time,  given  by  our  Legislature  to  Banking  concerns,  is 
called  for  during  this  session.  Still  a  few  relics  of  the 
ruin,  which  succeeded  the  downfall  of  business  and  gene- 
ral confidence,  requires  their  interposition.  They  rescind 
the  charters  of  two  Banks  and  lessen  the  capitals  of  four 
others.  Farther  than  this,  public  wish  and  opinion  did 
not  extend.  So  thought  a  Committee,  composed  of 
members  from  the  Senate  and  House.  On  several  peti- 
tions for  new  Banks  and  more  capital,  they  judiciously 
express  their  judgment.  ^  "  When  they  consider  the  March 
severe  trials  to  which  this  class  of  corporations  has  been 
subjected  for  the  last  two  years,  and  the  immense  losses, 
which  the  community  has  sustained  from  the  bad  man- 
agement of  a  portion  of  them,  and  that  not  three  months 
have  yet  elapsed,  since  the  Banks  in  this  Commonwealth 
were  required  to  meet  all  demands  on  them  in  specie ;  and 
when,  in  addition  thereto,  they  contemplate  the  new 
system  of  banking  introduced,  to  an  alarming  extent,  into 
a  neighboring  State;-  a  system  altogether  novel  in  our 
country,  the  result  of  which  it  may  be  difficult  to  foresee, 
the  Committee  feel  constrained  to  urge  upon  the  Legisla- 
ture the  propriety  of  pausing,  for  at  least  one  year,  before 
they  shall  create  new  Bank  institutions,  or  increase  the 
capitals  of  those  already  in  existence."  This  is  true 
philosophy,  teaching  from  abundance  of  examples.  Still, 
a  half  million  of  capital  is  added  to  the  Merchants'  Bank  April 
and  a  quarter  million  to  the  Suffolk,  both  of  Boston,  -^q 
Besides   this,  the    Fishermen's  Bank^   at  Provincetown, 


•  Report  of  a  Committee.  ^  Incorporated  April  5th. 

"■  New  York. 


238 


HISTORICAL  ACCOUNT  OF 


lg39_  with  a  capital  of  one  hundred  thousand  dollars,  is  incor- 
-^^"'^^  porated.  We  know  of  no  better  cases,  wherein  such 
allowance  should  have  been  granted.  But  greater  would 
have  been  our  hopes  that  the  teachings  of  past  experience 
would  lead  all  our  monied  institutions  to  double  their 
exertions  for  individual  safety  as  well  as  income  ;  and  our 
Legislative  authorities  to  permit  no  more  increase  of 
Banking  stock  than  the  business  and  ability  of  the  times 
require, — had  there  been  no  such  indulgence  at  present. 


We  have  now  reached  the  termination  prescribed  by 
the  plan  of  this  work.  Here  we  might  draw  deductions 
and  launch  into  speculations.  But  we  are  cautioned,  after 
so  long  a  hearing,  to  speak  more  in  monosyllables  than  in 
sentences.  Brevity  may  allow  us  to  make  a  leading 
remark  or  two,  before  we  open  our  appendix  of  a  few 
miscellanies.  It  is  very  evident  from  the  facts  already 
adduced,  that  no  branch  of  political  economy  is  more 
difficult,  than  the  regulation  of  money.  So  vexatious  to 
Q-ueen  Elizabeth,  with  all  her  sound  judgment  and  excel- 
lent counsellors,  was  the  management  of  her  metallic 
currency,  that,  in  the  excess  of  her  feeling  she' exclaimed, 
"it  is  a  monster."  So  great  has  been  the  difficulty 
attendant  on  pecuniary  concerns,  that  no  government, 
however  skilled  in  them,  has,  with  the  numerous  teachings 
of  the  past,  yet  practically  reached  the  highest  degree  of 
excellence  for  the  regulation  of  them.  Questions  are 
still  repeated — is  hard  money  alone,  or  this  and  paper 
together,  the  best  medium  of  exchange  ? — As  a  response, 
justified,  in  our  apprehension,  by  the  tests  of  civilized 
nations,  may  it  not  be  truly  said,  that  a  safe  amount  of 
coin,  represented  by  a  due  proportion  of  Bank  notes,  is 
far  more  convenient  and  more  profitable  than  any  other? 
We  are  aware,  that  no  small  difficulty  exists,  as  to  agree- 
ment on  what  these  proportions  are.  Shortness  of  space 
assigned,  forbids  the  discussion  of  them  here.     But  what- 


MASSACHUSETTS  CURRENCY. 


239 


ever  may  be  our  plans  for  the  safest  management  of  1339^ 
monied  affairs,  or  whatever  our  honest  care  to  supply  the  ^'^ 
physical  wants  of  our  nature,  we  are  sure  of  this  elevating 
fact,  that  the  hand  of  Infinite  Benevolence  freely  proifers 
to  us  all  intellectual  and  moral  treasures,  which  will 
survive  the  wreck  of  worlds,  and  be  to  their  possessors,  an 
incorruptible  heritage. 

"Wisdom  to  gold  prefer,  for  'tis  much  less 
To  make  our  fortune,  than  our  happiness." 


APPENDIX. 


APPENDIX.— No.  1. 

THE  COMPARATIVE  MEANS  OF  CURRENCY  IN  EACH  TOWN  OF  MASSACHUSETTS, 
AS  DESIGNATED  BT  THE  LEGISLATURE,  DURING  THEIR  EARLY  PERIODS, 
FOR  THE  PAYMENT  OF  PUBLIC   TAXES. 


Mvember  8,  1633. 


Boston, £48 

Rocksbury, 48 

Newe  Towne, 48 

Watertown, 48 

Charlton, 48 

Dorchester, 80 


Saugus, £36 

Salem, 28 

Wenetsemet, 8 

Mead  ford, 12 

Aggawam, 8 


May  6,  1635. 

It  is  ordered  that  there  shalbe  CC"'''  levyed  out  of  y^seuerall  Plantacons 
for  publique  vses,  the  one  halfe  to  be  levyed  presently  the  other  halfe 
before  the  nexte  generall  Court  viz.: 


lb.  s.  d. 

Dorchester, 27  6  8 

Boston, 27  6  8 

Newe  Towne,  ....  27  6  8 

Rocksbury, 20 

Watertown,       ....  20 

Charlton, 16 


lb.  s.  d. 

Salem, 16  0  0 

Saugus, 16 

Ipswich, 8 

Newberry, 8 

Wessaguscus,    ....       4 

Meadford, 10 


March  3,  1636.— £300  levy. 


Newberry, 11     5 

Ipswich, 25 

Saugus, 15  10 

Salem, 24 

Charlton, 23 

Waymothe, 3     5 

Newe  Towne,     ....  42 


£  s. 


Watertowne, 30 

Boston, 37 

Rocksbury, 30 

Dorchester,     .  •  .     .     .     •  37 

Hingham, 6 

Meadford, 15 


10 


10 


APPENDIX. 


241 


August  1,  JG37.— £400  rate. 


Boston, 59 

Newtowne, 29 

Wateitowne, 30 

Roxbcrrv, 30 

Salem,  '. 45  12 

Ipswich, 34  12 

Newberry, 16  18 


4 
12 

8 
8 


IVIcadford,  .  . 
Dorchester,  . 
Waiiiioth,  .  . 
Hinghaui,  .  . 
Charlestowne, 
Saugust,     .     . 


£  s. 
24  12 
42  G 
6  16 
8  10 
42  6 
28  IG 


Dorchester,  . 

Hingham, .  . 

Ipswich,    •  . 

Liun,    .     .  . 
Charlestowne, 

Boston,      .  • 

Cambridge,  . 


September  6,  1638.— Rafe /or  £400. 
£    s.    d. 


36 
11 
46 
31 
35 
57 
34 


16 
2 

10 

13 
14 
17 


3 

10 


9 
6 


Roxberry,  . 
Watertown, 
Salem,  .  . 
Neweberry, 
IMeadford,  . 
Waymoth,  . 


£ 

s. 

d. 

31 

29 

1 

3 

44 

11 

3 

27 

2 

6 

6 

15 

8 

7 

15 

May  22,  1639.— £1,000  Rate. 


Boston, 
Roxberry, . 
Salem,  .  . 
Waymoth, 
Hingham, . 
Liun,     .     . 


£ 
144 
74 
111 
23 
33 
79 


s. 
10 
12 

13 
2 

14 
19 


d. 

1 

6 

11 

5 

6 


Cambridge, 

Watertowne, 

Newberry, 

Dorchestei', 

Ipswich,    . 

Cliarlesto\vn, 


£ 

s. 

d. 

91 

19 

9 

81 

17 

1 

67 

8 

3 

93 

7 

9 

11 

18 

11 

85  15  10 


Hingham,    . 
Waymouth, 
Braintree,    . 
Dorchester, 
Roxbury,     . 
Boston,   .     . 
Dedham, 
Concord, 
Watertowne, 
Cambridge, 
Charlestown, 
Salem,    .     . 


May  14,  1645. 

£    s.  d.  £    s.  I 

15  Linn, 25 

10  10  Ipswich, 61  10 

10  10  Newbury, 23 

43  17  6  Salsberry, 10 

37  10  Hampton, 10 

100  Rowlev, 15 

20  Sudberry, II     5 

15  Meadford, 7 

41     5  Wooburnc, 7 

45  Wennam, 3  10 

55  Glocester, 4  17 

45  I 


31 


242  APPENDIX. 


APPENDIX.— No.  2. 


PRICES  OF  GRAIN,  ETC.,  APPOINTED  BT  THE  GENERAL  COURT  AND  TAKEN  AS 

CURRENCY. 

1642,     September. 
AVheat  and  Barley  4/.     Rye  and  Peas  3/4.     Com  2/6. 

1647.     October. 
Wheat  4/6.     Barley  4/.     Rye  and  Peas  3/6.     Corn  3/. 

1G48.     October  18.    ■ 
Wheat  and  Barley  5/.    Rye  and  Peas  4/.    Corn,  or  Indian,  as  it  was 
called,  3/. 

1649.  October  17. 

For  Rates — Wheat  5/.     Barley  5/6.     Peas  and  Rye  4/.     Indian  Com  3/. 

1650.  October  15. 

"All  sorts  of  Corne  shalbe  paid  in  the  Country  rate  at  these  prises  fol- 
lowinge,  viz.  Wheate  and  Barley  5/.  Rye  and  Pease  4/.  Indian  3/.  All 
merchantable  and  all  otlier  thiuges  payd  in  the  Countrye  rate  to  be  valued 
by  indifferent  men  accordinge  to  the  seuerall  prises  of  all  sorts  of  Corne 
aboue  mentioned  pr  Curiam." 

1654.     October  17. 
"All  sortes  of  Corne  shalbe  payd  in  the  Countrv^  Rate  at  these  prises — 
Wheat  and  Barley  5/.     Rye  and  Pease  4/.     Indian  Corne  to  March  10  2/8, 
after  that  3/." 

1655.    May  23. 

Wheat  and  Bai'ley  4/6.     Peas  4/.     Rye  3/6.     Indian  2/6. 

1658.  .  October. 
Wheat  5/.     Rye,  Peas,  Barley  and  Barley  Malt,  4/,  and  Corn  2/8. 

1662.     October. 
Barley  5/.     Malt  5/6.     Peas  and  Rye  4/6.     Cora  3/. 

1664.     October  25. 
Court  order  "  that  all  sorts  of  Corne  should  be  paid  in  the  Countiy  rate, 
at  5/  for  Barley  and  Barley  Malt  4/6.     Peas  and  Rye  4/.     Indian  3/.     And 
what  else  is  payd  in  the  country  rate  to  be  p"^  at  money  price." 

1667.     October  10. 
Wheat  5/.     Rye,  Barly  and  Barly  Malt  4/.     Peas  3/6.    Indian  Com  2/8. 

1670.     October  27. 
Wheat  5/.    Barly  Malt  4/.     Rye  4/.    Peas  4/.    Indian  Com  3/. 


APPENDIX. 


243 


1G71.     September  12. 
"The  prize  of  Corno  asfreotl  on  by  y"  Council  for  y*  Country  rate  for  y* 
ycare,  is  Indian  at  2/8.     Barley  Malt  5/0.     Ry(;  and   Pease  5/.     Wheat  5/6. 
All  good  and  nu'rcliantal)lr,  to  be  paid  into  the  Treasurer  and  all  other 
things  at  money  prize,  no  leane  cattle  to  be  paid  in  at  all." 

1C80.     JVovemher  5, 
Three  sinajle  Country  Rates,  2  to  be  paid  in  money,  1  in  Corn.  Wheat  5/. 
Barley  and  Barley  IVlalt  3/G.    Rye  3/.    Peas  4/.    Indian  Corn  3/6.    Oats  20<i. 
"  Wliat  is  not  paid  in  Corne  shall  be  at  money  prices,  horses  and  all  leane 
cattell  excepted." 

1681.     October  12.    . 
Wheat  6/.     Rye  4/6.     Peas,  Barley,  Barley  Malt,  4/.     Corn  3/6.     Oats  2/. 

1685.     October  17. 
Wheat  5/.    Rye  4/.     Barley  and  Barley  Malt  4/.     Indian  Corn  3/.    Oats 
2/.     Peas  4/. 

From  July  1,  1688,  to  January  1, 1689. 

Paid  in  grain  these  6  months  into  the  Ti-easury — Wheat  at  2/9,   Malt  and 
Barley  2/6.    Rye  2/.     Indian  14''.     Peas  3/.     Oats  10".— £1,152  7  4. 

From  January  1,  1689,  to  April  17,  1689. 
Loss  by  the  Treasux-y  in  the  sale  of  9,977|  bushels  of  grain — £99  1  3. 

1690.     February. 
Wheat  5/.     Rye  4/.     Oats  1/a     Corn  3/6.     Peas  4/.     Barley  and  Barley 
Malt  4/. 

1694.    March  27. 
Corn  2/3.    Wheat  5/.    Rye  2/9.    Barley  Malt  2/3.    Oats  1/4,  and  Peas  3/6. 


APPENDIX.— No.  3. 

Though  the  subsequent  document  was  not  passed  into  a  law, — yet  it 
serves  to  show  us  how  far  money  would  expend  for  labour  and  articles 
at  the  time  of  its  date. 

"  This  Court  considering  the  great  difficultie  and  discouragement,  that 
at  present  lyes  pressing  vpon  many  inluil)itants  of  this  jurisdiction,  espe- 
cially vpon  such,  as  whose  callings  are  in  husbandry,  not  oncly  by  reason 
of  the  afflicting  hand  of  God  vpon  them  seuerall  yeares  in  blasting  their 
principall  grayne,  and  abating  tlieir  increase  in  oth(!r  corne,  and  slowcnes 
of  market,  and  exceeding  low  price  for  what  the  husbandman  can  raise, — 
vnto  whose  afflicting  hand  all  ought  to  submitt  and  humble  themselves, 
and  yet  with  the  prophet  confcsse,  'Thou,  liOrd,  hast  alllictcd  vs  lesse  then 
we  deserue'; — but  also  difficultie  and  discouragement  arc  yet  heaped  and 


244  APPENDIX. 

increasing  vpon  them  and  others  by  reason  of  the  excessive  deerenes  of 
labour  by  artifficers,  labourers,  and  servants,  contrary  to  reason  and  equitie, 
to  the  great  prejudice  of  many  householders  and  their  familyes,  and  tending 
to  their  vlter  ruein  and  vndoeing, — and  the  produce  thereof  is  by  many 
spent  to  mayntayne  such  brauery  in  apparell  which  is  altogether  vnbe- 
coraeing  their  place  and  ranck,  and  in  idlenes  of  life  and  a  great  part  spent 
viciously  in  taverns  and  alehouses  and  other  sinfuU  practices,  much  to  the 
dishonour  of  God,  scandall  of  Religion,  and  great  offence  and  griefe  to 
sober  and  godly  people  amongst  vs.  AH  which  timely  to  prevent,  this 
Court  account  it  their  duty  carefully  by  all  good  meanes  to  provide,  and 
therefore  doe  ord«r  as  foUoweth. 

It  is  therefore  ordered  Ijy  this  Court  and  the  authoritie  thereof  that  no 
person  within  this  jurisdiction,  directly  or  indirectly,  shall  hereafter  either 
paye  or  receaue  for  worke,  labour  or  comoditie,  more  or  aboue,  then  is  in 
this  present  order  appointed,  and  that  vpon  the  penalties  therein  heere  after 
expressed. 

Imprimis.     Labourers  by  the  daye,  from  the  end  of  Sep- 
tember to  the  end  of  March,  dyeling  themselues, 
From  end  of  March  to  the  end  of  June, 
From  the  end  of  June  to  the  end  of  Septr.  they  workeing 
10  houres  in  the  daye,  besides  repast, 

2.  Taske  worke.     One  acre  of  salt  marsh  and  one  acre  of 

English  grasse  well  mowen, 
One  acre  of  fresh  meadowe  well  mowen, 
"       "      "     Wheat  "    reapeing, 

"        "      -'     Rye  "    reapeing, 

"       "      "     Barly  and  one  of  oats,  each  well  mowen, 
"       '/      "     Peas,     cutting, 
"    coarde  of  woode,  cutting  and  well  coarding. 
These  wages  are  allowed  as  aboue  to  workemen  dyeting  themselues. 

3.  Caipentei's,  and  Masons,  and  Stone-layers,  from  1  March  to  10  of 
October,  2/  per  day;  and  all  worke  taken  by  the  great  or  peice  by  carpen- 
ters, masons,  joyners,  or  shinglers,  is  to  be  ap])ortioned  according  to  the 
equitie  of  the  value  of  daye's  worke  as  above,  they  dyeting  themselues. 

4.  Master  Taylors,  and  such  as  are  fully  woi-kemen  of  that  trade,  for  one 
daye's  worke  of  12  hours,  1/8.  A])prentices  to  that  trade  the  first  four 
yeares,  the  like  daye,  1/.  And  all  weauers  for  their  worke  at  12  hours  per 
day,  are  to  haue  the  like  wages  as  taylors. 

5.  All  men  and  women  seruants  shall  in  their  respective  wages  be 
moderated  according  to  the  proportion  of  labour  aboue  limitted. 

6.  No  person  shall  pay,  neither  shall  any  shoemaker  receaue,  more  then 
5/  for  men's  shoes  of  eleuens  or  twelues,  zior  for  women's  shoes  of  seauens 
or  eights  more  then  3/8 ;  and  all  bootes  and  slioes  of  other  sizes  propor- 
tionable to  the  rates  abouesaide. 

7.  Cowpers  shall  not  receaue  nor  any  person  paye  for  a  thight  barrell 
of  32  gallons  aboue  2/8,  and  other  cowper's  worke  proportionable  in  price 
to  barrels. 

8.  Smythes  shall  not  take  nor  any  person  paye  for  great  worke,  as  for 
shi])s,  mills,  plovgh  irones, — all  irones  for  cart  wheeles  well  layd  vpon  the 
wheeles,  and  other  the  like  great  worke,  above  5"'  per  lb.  For  smaller 
worke  as  chaynes  and  other  the  like  soldo  by  weight,  not  aboue  6'^  per  lb. 
For  the  largest  horse  shoe  well  set  with  seven  nayles,  not  above  6'i  pr  lb. 
For  rcmoucing  a  horse  shoe,  2''.  For  an  ordinary  felling  axe,  3/6.  For  one 
broad-axe,  5/G.  One  broad  hough,  3/.  All  being  good  and  well  steeled; 
and  all  other  sinithe's  worke  not  named  to  be  proportioned  according  to 
the  prices  abouesaid. 

9.  And  whereas  it  apears  that  Glouers,  Sadlers,  Hatters,  and  seuerall 
other  artificers  doe  at  present  greatly  exceed  the  rules  of  equitie  in  their 


1/3 

per 

day 

1/8 

n 

II 

2/ 

tt 

It 

2/ 

per 

acre 

1/6 

If 

II 

4/ 

II 

II 

3/ 

II 

It 

1/ 

II 

II 

3/ 

II 

II 

1/3. 

APPENDIX.  245 

prizes,  they  are  all  required  to  moderate  the  same  according  to  the  rules 
})rescrjbed  to  otlicrs,  or  know  that  in  neglect  thereof  they  are  lyi.ahlc  to 
presentment  and  proceeded  against  according  to  the  Lawe, — Title  Op- 
pression. 

Innkeepers  and  ordinary  keepers  are  required  to  attend  the  dutie  of 
them  exi)ected  according  to  Lawe,— Title  Innkeepers,  sec.  11,  which 
order  ought  more  carefully  and  strictly  to  be  executed  for  the  prevention 
of  oppression  in  selling  of  wine,  and  as  for  selling  beerc  tliey  are  to  attend 
the  Lawe,  that  orders  what  quantitie  of  make  is  to  be  putt  into  each  hogs- 
head of  beere,  and  that  when  malt  is  vnder  4/  per  bushel!  then  to  sell  no 
lesse  then  one  quarte  for  lh'\  and  for  entcrtayument  of  horses  in  Sumer 
not  to  take  more  then  4<i  for  one  daye  and  night,  and  in  winter  not  to  exceed 
6**  for  the  like  time. 

All  these  payments  are  to  be  made  m  merchantable  Corne  at  the  price 
from  yeare  to  ycare,  set  by  the  Gcuerall  Courte,  prouided  that  when  the 
materials  are  brought  from  the  market  by  the  artificer,  as  shoemakers, 
smythes,  and  the  like,  allowance  may  be  made  for  that  charge  by  the  buyer 
according  to  what  the  transportation  may  be. 

If  any  person  shall  paye  or  receaue  more  then  according  to  the  rates 
aboue  expressed,  he  or  they,  both  buyer  and  seller,  shall  forfeit  the  full 
treble  value  of  what  shall  be  payed  or  receaued,  one-halfe  to  the  enformer 
and  the  other  halfe  to  the  Treasurer  of  the  seuerall  Countie  Courts. 

The  President  of  euery  Countie  Courte  shall  at  euery  such  Court  giue 
in  charge  to  the  Grand  Jury  to  enquire  carefully  into  the  breach  of  this 
order  in  eueiy  particular  thereof.  And  all  Grand  Jurymen  are  required 
vpon  their  oath  to  present  all  offences  against  this  Lawe,  and  if  it  shall 
apeere  to  the  Court  of  the  Countie  at  any  time  within  one  yeare  after  the 
offence  is  comitted,  that  any  Grand  Juryman  has  knoweingly  neglected 
his  dutie  heerein,  he  shall  vpon  conuiction  before  the  Courte  be  fined 
Tenn  times  so  much  as  the  oflenders  should  have  payed  whome  he  ought 
to  have  presented. 

The  Deputyes  having  considered  of  this  Bill  about  regulatmg  work- 
men's wages,  doe  think  it  meete  to  refer  the  same  to  consideration  yn- 
till   the  next  Court   of  election,  our    honoured    Magistrates    consenting 

hereto.  ^,    . 

Wm.  Torret,  Cleric. 

May  17,  1670.  The  Magistrates  liaue  passed  this  Bill  for  an  order  of  this  Court,  desiring 
v«  consent  of  our  bretheren  ye  deputyes.  ,  „  , 

'  John  Pynchon,  per  order. 


The  Deputyes  consent  not  hereto. 


Tried  again  Oct.  11,  1672.— Magistrates  consented. 

Deputies  non-concurred. 


William  Torrey,  Cleric. 


246 


APPENDIX. 


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Al'l'ENDlX.  247 


APPENDIX.— No.  6. 


As  parts  of  tlie  inscription  on  the  bills  called  "sword  in  hand  money," 
are  still  retained  on  the  present  seal  of  Massachusetts,— it  was  deemed  not 
amiss  to  give  here  a  general  account  of  the  seals  under  the  different  forms 
of  government, — assumed  by  this  Commonwealth. 

SEALS  OF  MASSACHUSETTS. 

FIRST  CHARTER. 

Company's  Seal.- This  Body  say,  in  a  letter  to  Governor  Endicott,  at 
Salem,— April  21, 1C29,— We  have  sent  you  by  Mr.  Samuel  Sharpe,  passen- 
ger in  the  George,  "The  Companye's  Scale  in  Sihier."  Tlio  iiiscrii)tions, 
etc.,  on  this  seal,  Avere  as  follow : — The  representation  of  an  Indian — having 
a  full  head  of  hair — a  covering  of  loaves  around  his  loins — a  bow  in  his  left 
hand  and  an  arrow  in  his  right.  He  occupies  uncultivated  groimd,  with 
pine  trees  adjacent  to  him.  He  has  a  label  appended  to  his  mouth,  deno- 
ting a  principal  design,  for  which  the  American  Colonies  were  settled- 
even  the  Evangelizing  of  the  Aborigines. — The  phrase  of  the  label  is, 
"Come  over  and  help  us."  Around  tlie  seal,  towards  the  cu-cumference, 
are  the  succeeding  words  in  Roman  capitals, — Sigillvm  Gub.  et  Societ.  de 
Mattachvsetts  Bay  in  Nova  Anglia.— There  is  a  -|-  over  the  head  of  the 

image  between  Sigillvm  and  Anglia. A  tradition  exists  among  some  of 

our  most  intelligent  Antiquarians,  that  John  Hull,  one  of  the  Colonial  Mint 
Masters,  struck  oft"  the  preceding  seal.— It  is  undoubtedly  a  mistake  that  he 
made  the  first  one. — But  that  he  manufactured  one  or  more  impressions  of 

it,  is  very  likely,  because  its  size  varies  on  ditterent  documents. -Perhaps 

it  may  not  be  deemed  amiss  to  record  here  one  instance  of  legislation,  with 
regard  to  this  seal.— "1651,  Oct.  14.     This  Court  conceiues  it  both  dis- 
honourable and  troublesome,  that  at  all  times,  euen  when  the  most  weighty 
occasions  of  the  Country  are  in  hand,  the  Goueruor  should  affix  the  scale 
of  this  Colonic  as  often  as  men  haue  occasions  to  Letters  of  Atturney  and 
certificates,  and  yet  haue  nothinge  for  the  same ;   And,  therefore,  orders, 
that  henceforth  whosoeuer  shall  procure  the  seale  of  this  Colonic  to  any 
certificate.  Letter  of  Atturney,  or  Commission,  shall  satisfie  the  present 
Gouernour,  for  the  time  beinge,  fine  shillinges  for  aftixinge  the  seale  afore- 
said and  attestinge  therevnto  vnder  his  hand."— As  a  matter  of  course  it  is 
understood  that  this  seal  varies  nnich,  in  its  impressions  and  import,  from 
the  great  Seal  of  England,  as  appended  to  the  jmtent  brought  over  by  Gov- 
ernor Winthrop.     As  the  latter  is  gradually  diminished— l)y  the  nibblings 
of  curiosity — a  description  of  it  may  be  desirable. — On  one  side,  it  has  the 
fio-ure  of  St.  George — a  horse-back— accomi)anied  by  a  hound,  having  a 
spear  in  his  right  hand,  ready  to  strike  a  dragon,— and  a  circular  inscription 
not   legible. — On  the   reverse    is  the   representation    of  a  King— dressed 
in  state— with  a  sceptre  in  his  right  hand  and  a  globe  in  his  left.     Tliis  side, 
according  to  the  words  yet  remaining,  contains  the  customary  regal  titles. 
The  Seaf,  thus  mentioned,  is  noticeable  lor  its  very  green  colour.     This 
hue  seems  to  have  been  preferred,  as  appears  from  tiie  subse<|uent  fact. 
Seals  of  this  kind  began  among  the  English  in  the  reign  of  Williain  the 
Conqueror,  who   adopted  such  a  colour  "to  signify  that  the  act  contmued 
forever  and  of  force."     The  same  hue  is  on  the  seal  of  the  Explanatory 
Charter  of  1725,  and  was  probably  on  that  of  the  Second  Charter,  which 
has  lost  its  regal  sanction. 

USURPATION. 
The  seal  under  this  administration  had  the  ensuing  delineations.     On 
one  side,  a  royal  personage,  in  full  costume,  with  the  insignia  of  his  rank; 


248 


APPENDIX. 


an  angel  in  the  front  of  him  and  partly  higher  than  his  head,  flying  with  a 
scroll  of  undiscernahle  words  in  his  right  hand.  Before  his  majesty  are 
two  men — with  heads  uncovered — each  resting  on  a  knee,  one  holding  up 
a  petition  towards  the  extended  hand  of  the  King,  and  the  other  with  a 
dish  of  fruit  as  an  offering.  These  emblems  were  plainly  intended  to 
denote  Colonial  subjection  to  the  crown — far  more  abject  than  under  the 
first  Patent — as  to  the  population,  wishes  and  productions  of  our  Country. 
In  a  line,  parallel  to  the  periphery,  are  the  common  titles  of  his  Majesty  in 
Roman  capitals,  viz. — Jacobvs  II.  D.  G.  Mag.  Brit.  Fran,  et  Hib.  Rex  Fi- 
del Defensor.  On  the  reverse  were  the  following  impressions.  The  Royal 
Seal,  such  as  the  Ci'own,  Lion  and  Unicorn,  arms  of  England,  France,  and 
Ireland, — the  garter  with  Honi  soit  cvi  mal  y  pense,  and  at  the  bottom,  Diev 
et  mon  droit,  as  adopted  by  King  Richard.  Towards  the  circumference, 
in  Roman  capitals,  were  Sigillvm  Novoe  Angliee  in  America. 

INTER-CHARTER. 

As  the  government,  which  succeeded  the  Revolution  of  1689,  was  ac- 
cording to  that  of  the  First  Charter,  it  is  very  probable  that,  so  far  as  any 
seal  was  used,  it  was  that  of  the  Massachusetts  Company. 

SECOND  CHARTER. 

Province  Seal.  This  had  the  regal  arms,  as  usual,  and,  within  the  cus- 
tomary titles  of  their  majesties,  was  the  ensuing  circular  inscription  in 
Roman  capitals ; — Sig.  R.  Provincife  de  Massachusetts  Bay  in  Nova  Anglia 
in  America.  The  appendages  of  the  Lion  and  the  Unicorn,  did  not  accom- 
pany this  seal,  as  impressed  on  the  Provincial  Acts  down  to  Sept.  13, 1728; 
but  they  did  on  the  Acts  from  April  18, 1729,  to  June  29, 1773;  after  which 

we  have  no  regal  seal  on  such  documents. 1767,  July  9. — The  King 

requires  our  government  to  use  a  new  seal,  which  he  had  sent  them — like 
the  foregoing,  except  a  change  of  the  royal  names — and  "to  return  the  old 
seal  to  our  Council  officers  at  Whitehall,  in  order  to  its  being  defaced  by 
us  in  our  Privy  Council." 

REVOLUTION. 

Seal.  1775,  Aug.  5.  The  Council  vote,  that  the  report  about  the  Colony 
Seal  be  accepted  with  this  amendment,  viz. — "Instead  of  an  Indian  holding 
a  tomahawk  and  cap  of  liberty,  there  be  an  English  American  holding  a 
sword  in  the  right  hand,  and  Magna  Charta  in  the  left  hand,  with  the 
woi-ds,  Magna  Charta,  imprinted  on  it,  and  I'ound  him  these  words — Ense 
petit  placidam  sub  libertate  quietem."  The  inscription,  so  amended,  was 
borne  upon  the  seal.  As  is  well  known  by  some,  this  Latin  quotation  is 
from  the  noted  line  j\nd  a  half,  written  by  Algei'non  Sidney,  in  the  Album 
of  the  University  at  Copenhagen , — 

-Manus  hasc,  inimica  tyrannis, 


Ense  petit  placidam  sub  libertate  quietem." 

CONSTITUTION. 

Seal.  1780,  Dec.  13.  Our  present  seal  is  appointed  at  this  date,  by  the 
Governor  and  Council,  as  they  had  been  requested  by  the  Representatives. 
Their  restoration  of  the  Indian  appears  to  have  been  in  accordance  with 
the  poi)ular  wish. — A  comparison  between  the  figure  on  the  first  seal  of 
Massachusetts  and  that  on  its  present  one,  shows  that  the  red  man  had,  as 
portrayed  on  the  last,  become  considerably  civilized.  It  is  readily  perceived 
tliat  our  seal  of  this  day  is  made  up  from  that  of  the  Revolution,  and  of  the 
Company  under  the  first  Charter. 


14  DAY  USE 

RETURN  TO  DESK  FROM  WHICH  BORROWED 

LOAN  DEPT. 

This  book  is  due  on  the  last  date  stamped  below,  or 

on  the  date  to  which  renewed.  1 

Renewed  books  are  subject  to  immediate  recall.       i 


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General  Library 

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